Alstom update

December 3, 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
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proceedings and legal compliance risks, including the impact of financial services regulation and litigation; 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 Appliances disposition and
our announced plan and transactions to reduce the size of our financial services businesses; our success in integrating acquired businesses and operating joint ventures; our ability to realize anticipated earnings and
savings from announced transactions, acquired businesses and 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.
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Imagination at work.

Agenda
Overview

Jeff Bornstein/Mark Hutchinson

Business deep dives

Power

Steve Bolze

Gas Power Systems

Joe Mastrangelo

Power Services

Paul McElhinney

Renewable Energy

Jrme Pcresse

Grid

Russell Stokes

Financial update

Lynn Calpeter

Wrap up

Jeff Bornstein
2

Overview
New GE
~$130B

Deal summary
Completed acquisition of Alstom Power &
Grid on November 2 for $10.3B
Complementary technologies in segments
we know; brings scale to grid business
Solid customer support & opportunity to
build broader solutions
Synergy pipeline robust strong track record

Revenue
+ Leadership businesses with $300B+
backlog
+ Built on the GE Store: technology,
services, and global footprint
+ Strong margins & returns

Improved joint capabilities global

operations, project capabilities, services
Alstom in play for ~18 months has
impacted business performance
Alstom EPS ~$0.05 in 2016, $0.15-0.20 in
2018 IRR ~15%+

A critical step forward in GEs industrial transformation

3

The Alstom deal

(2014 revenue, $ in billions)

Acquired businesses

Alstom alignment in GE
Power Services

Thermal

Power

Gas Power

GE

Alstom

$8

$6

$14B

$1 $7B

$6

Gas
Steam Power

Steam

$3B

Services

Renewables
Onshore Wind

Renewable
Energy

Onshore Wind
Offshore Wind

$6

$1

$7B

50/50 JV

$0B

Hydro

Grid

Energy
Management

Grid Solutions

50/50 JV

$2B

Hydro

Offshore Wind

$1

$5

$6B

50/50 JV

Alstom reported revenue on GE calendar basis, converted at average 2014 FX rates

Alstom adding value to GE

Core GE Store foundations
GRC

Technical Leadership
Generational gains through NPI strength

+
GGO

Lead in Growth Markets

Scaled & balanced geographic portfolio

Service
Council

Leading steam, HRSG, & grid/HVDC

technology
Turnkey & total plant design capabilities
Emerging market expertise ~85%+ of
revenue outside the U.S.

+
Valuable Services Franchise
Increasing growth rate & margins

Shared
services

Alstom capabilities

More than 500 GW gas & steam installed base

Strong multi-vendor capability

+
Culture of Simplification
Lean structure and common processes

Overlapping global structure

Excellent global leadership team

GE
Digital Strength
Digital
Lead the intersection of physical & analytical

High-tech grid solutions

Opportunity for Predix adoption
5

Different business models

Power
+
Services

Renewables
+
Services

Grid
+
Services

Margins

~20%

~5-10%

10%+

Returns

~20%

~30%

~15%+

Goals

Profit
drivers

Technical depth

Integration/product cost Lower product cost

Services & analytics

International growth

Supply chain strength

Build services

Project & supply chain

execution

Global reach

Manage projects

Commercial excellence

Can win in each incremental margins and returns

6

Synergy overview

($ in billions)

Cost synergies

2020F synergy benefits

+ Manufacturing & services

$0.5

~$3.0
~$2.5

~$1.1

2016F
Cumulative
~$0.5
investment

2018F

~$1.6

+ Sourcing

0.9

+ SG&A

1.2

+ Engineering/technology

0.4

2020F

Total cost synergies

~$3B

+ Growth synergies

$0.6+

~$1.9

Executing from day one

7

Integration readiness
Executing functional work streams 200+ people dedicated
40+ Alstom leaders joined GEs senior leadership team, 2 Alstom leaders
named to Corporate Executive Council
Clear accountability and ownership of synergy projects, monthly
operating rhythm

Commercial execution winning deals together (GE4GE)

Ansaldo divestiture in 1Q16
Moving fast to instill GEs integrity culture and compliance programs
Teams in place and executing
8

Key Alstom leaders

Corporate
Philippe Cochet
SVP, Chief Productivity
Officer
Fairfield

Power
Andreas Lusch
VP, Steam Power Systems
Baden

Michael Rechsteiner
VP, Thermal Services
Baden
Keith Carr
VP, Power General Counsel
Baden

Renewable Energy
Jrme Pcresse
SVP, Renewables
Paris
Yves Rannou
VP, Hydro
Paris

Grid
Stphane Cai
VP, Grid Products & Global
Supply Chain
Paris

Strong bench of Alstom leaders joining GE

9

Power

THE NEW GE POWER

~$32B 14 REVENUE/~65,000 EMPLOYEES/>120 COUNTRIES

GAS POWER
SYSTEMS

POWER
SERVICES

STEAM
POWER
SYSTEMS

DISTRIBUTED
POWER

GE HITACHI
NUCLEAR

WATER &
PROCESS
TECHNOLOGY

Schenectady, NY,
USA

Baden,
Switzerland

Baden,
Switzerland

Jenbach,
Austria

Wilmington,
NC, USA

Trevose, PA,
USA

FUNCTIONAL
EXPERTISE

OPERATIONAL
EXCELLENCE

DIGITAL
CAPABILITY

#PoweringEveryone
1111

Power overview
Global presence

Services

% Revenue

Installed base

~1,500GW
Europe
22%

U.S.
28%

Middle East
20%
Asia
18%

LATAM
7%
Africa
4%

~$50B
backlog

~500

~1,000

Gas & steam

~50% revenue outside the

U.S. and Europe
72 global facilities
Local talent & execution

Largest installed base

Expanded steam & BOP

capability
Other OEM as growth
opportunity
12

Power demand growing fundamentals strong

~38K TWh

Central power

Energy Efficiency & Onsite tech

(Includes rooftop solar/diesel recips)

~31K TWh

~3% CAGR

~24K TWh

Other
Solar
Wind

1.3

0.2
0.7

Nuclear

2.5

Hydro

3.9

Gas

Hydro
Nuclear

5%
6%

Other

570 GW of
retirements

2%

~3X

3.1
4.5

Coal

Energy drivers
Economic growth (GDP)
Population growth
Demand-side efficiency

19%
Solar 15%

5.0

2,500 GW

10.0

Wind

7.4

50%

30%

20%
20%
Coal

1.5
0.9
2.2

3%

Gas
Turbines

10.9

Capacity drivers
Environmental policy
Economic displacement
Peak demand growth
Fuel availability & price

Gas Engines

Central Power Equipment Orders*

Energy 14

*Excludes 700 GW of non-grid connected capacity additions

Energy 24F

Alstom technologies complement growth prospects

Sources: World Bank, IEA, IHS, EIA, EPRI, Navigant, Brattle, GE Marketing
1313

Expanding the GE offering

GE contribution
Alstom contribution

Power

Grid

Gas

Distribution

Renewables
Onshore Wind

Hydro
Transmission

Steam
Offshore Wind

Worlds most efficient power plant offering Comprehensive T&D offering

Enhanced Renewables portfolio
Broader Services solutions
Key enabler of GE2GE & GE4GE growth opportunities
14

Expanding Power competitiveness

Technology leadership

Worlds most efficient power plant offering

Gas & steam leadership, complete plant solutions

Broader services platform

Broaden digital reach, multi-technology capabilities

Expanded GE Store capability

Projects/risk management, local cost position

Global presence

1/3 of the worlds power

~1,500 GW installed base, 2x India presence

Local capability to support customers

>120 countries, 6,000 service engineers

Enhanced emerging market capability

Expanded solutions, global footprint

Unlocked value for customers and shareholders

15

Power synergies

($ in billions)

Cost synergies

Power synergies by 2020

~$2.2

~$1.7

~$0.7

2016F

Cumulative
Investment ~$0.3

2018F

2020F

~$1.3

~$1.5

+ Manufacturing & services

$0.5

Cost

Growth

Gas Power

$0.5

$0.1

Steam Power

0.4

Services

0.8

0.1

HQ

0.6

~$2.2

~$0.2

Power

Early wins

+ Sourcing

0.6

Indirect sourcing cost

+ SG&A consolidation

0.8

Combined direct material buy

+ Engineering/technology

0.3

Portfolio investment strategy

Total cost synergies

+ Growth synergies

~$2.2B
~$0.2

SG&A overlap

Clear ownership and accountability

16

GE Store expands with Alstom acquisition

Alstom GE

GE Alstom

Vertical integration of key technologies

GE revenue & margin growth

Gross margin recapture

Expanded BOP scope

Design for performance

Simpler execution for customers

Heat Recovery
Steam Generators

Boiler feed pumps

& valves

30+ opportunities per yr.

Gas Turbine
Generators

Low & medium

voltage equipment

40+ opportunities per yr.

Opportunity to expand GE2GE buy $1B+ by 2018

17

Winning better together globally

Additional/extended scope

Enhancing power cycle

QA Thermal Power Ltd,
Government of Punjab Pakistan

4x 7HA.02 GTs
2x STs
4x HRSGs

1x 7HA.02 GT
1x ST
1x HRSG

Technical selection
2x 9HA.01 GTs
4x 9HA.01 GTs

1x ST

2x ST
2x HRSGs

+ 7HA launch with complete GE power island

+ Bhikki order signed with Alstom-sourced ST

+ Extended package offering with Alstom HRSGs

additional value creation for GE

+ Unprecedented performance levels with

combined offering +0.5pt of efficiency

+ Total fulfillment, execution & performance

+ Global business partners, including Harbin

Potential to double the size of the gas business

18

Steam Power Systems

Market segment & global presence

~25%

~63 GW
Nuclear

~13

Coal

~50

total installs over

the next 10 years

~40%

of todays
installed base

Segment
demand

A leading player in coal and high efficiency

Strong in Nuclear turbines
Strong presence & capabilities in key Asian countries

Technology
Coal Power Plants

Nuclear Turbine Islands

Broadest in-house portfolio

Leading technology to
minimize environment impact
Best life cycle economics

Growth with GE
More customers through additional GE
base, including GE O&G and GE industrial
presence

Better stakeholder relationships with GGO

and presence in growth regions
Improved competitiveness through local
supply chain and financing capabilities
GE2GE/insourcing opportunities
New generation of analytics and digital
solutions as differentiator

Increased ability to win against competition

19

Total project execution capability

Risk mitigation

Alstom project portfolio

Steam
Euro

Grid

pe
X%
Gas

Wind

~$18B
equipment
backlog

Hydro

Established dedicated central PMO ~120+

years experience and growing
U.S.
X%
LATAM
X%

Risk-based reviews at underwriting

Africa
X%

~170 large projects in over 50 countries

Term ranges 2-7 years
Backlog margins as expected

Complexities
Project scope

Contract liabilities

Global execution

Multiple partners

Asia
X%
Coordinated

EPC partner strategy

Lifecycle project reviews to influence

execution outcomes

Superior process, tools, and workforce

competencies

Implementing rigorous EPC processes & capabilities

20

Power summary
($ in billions)

Driving profits

Revenue
~$32

10.1

21.5

2014

2015E

Environment

Improved product performance

Lower product cost + supply
chain efficiencies + HA ramp-up
Service margins

+ Continued growth of natural gas,

renewables, coal

More expanded scope

+ Global trend towards project

solutions for customers

Manage project risk

Supply > demand in Europe

Strong platform improved global competitive position

21

Alstom reported revenue on GE calendar basis, converted at average FX rates for each year

Gas Power Systems

Gas Power Systems overview

($ in billions)

Profit drivers

Revenue
~$7
1.0

Strong gas dynamics ... ~45 GW/year

Abundant & competitively priced
Leads all fuels in capacity growth

5.8

+
Improved core competitiveness
New technology leadership (HA class)
Competitive cost structure (SG&A/sales ~4%)

2014

2015E

Selected competitors

GE + Alstom = better outcomes

~63% CC efficiency (~1pt = $50MM)
Integrated solution capability for faster
power

Adding new capability in a growth segment

23

Alstom reported revenue on GE calendar basis, converted at average FX rates for each year

New Gas Power Systems capability

Integrated systems expertise

Alstom value creation

GE contribution

Combined cycle performance

Alstom contribution

Broader gas turbine portfolio

Bottoming cycle enhancements

Cycle time for quicker power

Modular power island configurations
Scalable global project capability

Power Gen
International
launch

Product cost + volume

Best steam cycle
adds 20%+ pts to eff. Component cost & performance
GE2GE/GE4GE volume

Grid Solutions

Better customer outcomes ... increased growth opportunities

24
24

Utility scale technology shifting to H class

Segment opportunity
35 GW
25%
75%
F
class

75%

Yesterday

$36/year

35+ GW

4X
Revenue
potential

Complexity

H
class

GE + Alstom capability

$15
$12
$9

25%

Turnkey
Power
Island
Equipment
only

HRSG
GT performance guarantee
100% of time

ST performance guarantee
~15% of time

topping cycle

bottoming cycle

Today

Segment
CAPEX ($B)

13 -15E 16F -18F

Segment drivers
Cost effective performance
Gas turbine reliability
Access to capital

Complete power island performance guarantee

Recent power island guarantee win

+10MW

Plant Output

$0

Incremental
Cost

+$35MM

Customer Value

New capabilities = 2x growth potential

25
25

Additional GE store capability

H turbine extended scope

Multiple synergy opportunities

(Orders backlog $B)

++
70+
technical
selections

Lower component cost ...

welded rotor
25%
cost-out

$1.1
$0.5
2013

Improved product performance

... high pressure steam
2014

2015E

Gas Turbines

15

25-30

Steam Turbines

8-11

Generators

12

25-30

HRSG

5-7

+0.5 pts.
efficiency

Supply chain vertical

integration ... generator
product line

$200MM
potential

Deliver growth on synergy pipeline ... find more opportunities

26

Bringing the GE store to intermediate power

GE + Alstom capability

Segment opportunity
20 GW
Combined
Cycle

Simple
Cycle

50%

50%

~20GW

Complete GT portfolio

$27/year

GT MW size

$11

Turnkey

$8

Power
Island

$8

Equipment
only

Filled
30% Gap

65%

35%

13 -15E 16F-18F

Segment
CAPEX ($B)

Segment drivers

Modular Power Island

Project financing
Speed to power
Operating flexibility

50%
site
manhours

25%
faster
power

Integrated, flexible solutions addressing a broader opportunity

27
27

Digital ecosystem
Digital Thread

Virtual Power Plant

Predix TM Applications

NPI cycle time & cost

Build/commission cycle

Production downtime

Throughput & quality

Performance/reliability

Installed cost/interfaces
EPC/end-user partnerships

Revenue & reliability

Dispatch & profitability

Engineering
models

Virtual
Battery

Smart
Start

Reduced
execution
risk

Continuous
NPI Cycle

Rigorous
testing

Grid
Integration

Manufacturing
technology

15
Customers
to date

Integrated digital & industrial capability across value chain

28

Power Services

Power Services
GE installed base

With Alstom

Accelerating access + capability

Leapfrog decades of organic growth

~24,000 units
+60%

~15,000 units

Stronger in steam: broader steam

portfolio targeting steam tails

Expanding other OEM capability:

utilizing Alstom technology/expertise
~$50B backlog
~$14B revenue ~50% of GE Power
Attractive margins

Local presence: ~26,000 people, 6,000

engineers, 50+ repair shops

Complete portfolio offering all equipment, any plant

30

Expanding service margins

$5B+

Roadmap to +10 points expansion

Alstom Thermal
services revenue

~10 pts.

Material cost sourcing, design

and life extensions

+3 pts.

Margin
opportunity

Outage cost field automation,

cross training, efficiencies

+3 pts.

Repairs shop automation,

improved yields

+2 pts.

Digital condition based

maintenance & monitoring

+2 pts.

+7 pts.
Boiler
+7 pts.

Steam
/Gen

Gas

+14 pts.

Applying GE service discipline for margin accretion

31

Technology driving growth

Combined revenue

Technology collaboration

$0.5B
growth
synergies

2020F revenue
impact
AGP

MXL2

Upgrades

$0.2B

Steam tail
capture

$0.1B

Software
solutions

$0.1B

Other
OEM

$0.1B

++
~$14B

5.7

8.4

2014

++

2015E

+
+

2020F

$0.5B

Complementary expertise huge potential

32

Alstom reported revenue on GE calendar basis, converted at average FX rates for each year

Broadening services capabilities

Expanding digital presence

Winning in steam

Assets under management

~600

~2,700

20%

~90
Current

Target

Utility
Steam units

Upgrade
penetration

Connect assets target customers identified

Increase GE steam OEM penetration +30 pts.

Integrate Alstom software & domain expertise

Utilize Alstom other OEM capability to share

Utilize established GE digital solutions

Improve supply chain cycle / efficiency

Adding levers to grow Power Services

33

Renewable Energy

THE NEW RENEWABLE ENERGY

~$9B 14 REVENUE/~13,000 EMPLOYEES/>55 COUNTRIES

ONSHORE
WIND

OFFSHORE
WIND

HYDRO

Schenectady,
NY, USA

Nantes,
France

Paris,
France

GLOBAL
REACH

BROAD PRODUCT
OFFERING

EXECUTION
EXCELLENCE
35

GE Company Proprietary & Confidential GE 2015 All Rights Reserved

Renewable Energy will continue to grow

Market:
Continues to drive towards CO2 free energy
Most renewable energies now at grid parity
GE:
Broadest and deepest renewables
technology portfolio in the industry
370 GW of installed base (>20% of total)
Access to stronger resources to scale
quickly & foster leadership
More visibility and accountability
towards customers & shareholders

GE: leader in the fastest growing Energy market segment

36

Renewable Energy strategy

($ in billions)

Driving profits

Revenue
~$9

2.8

6.4

2014

+
2015E

Lower product cost through GE +

Alstom global supply chain capabilities
Apply GE services playbook + digital
grow volume & margins
Drive international growth through
increased global reach & more
diversified product offering

Environment
+ Strong growth in renewables power
demand
+ Large combined installed base to grow
services and digital
Challenging execution/GE Onshore Wind
new product transition

Successful launch of Wind NPI

Execute on synergies & restructuring
Manage project risk best-in-class
execution
37

Alstom reported revenue on GE calendar basis, converted at average FX rates for each year

Renewable Energy overview

Middle
East 1%

Global presence

Services

% Revenue

Installed base/capacity

227 GW

Europe
16%

Asia 8%
Africa 2%

U.S. /
Canada
51%

LATAM
22%

29K
3K

26K
Wind
turbines

Hydro
capacity (*)

30%+ revenue in growth

markets

43% Onshore Wind installed base

penetration

17 facilities across the

globe

Large services growth opportunity

across all products

~13K employees

Digital capabilities
38

(*) installed capacity (average Turbine & Generator) at end of 2014

Renewable Energy: synergies overview

($ in billions)

Cost synergies

Synergy examples
~$0.3

~$0.2
~$0.1

2016F
Cumulative
investment ~$0.1

Streamline duplicative HQ and

support functions
Optimize R&D in overlapping product
lines

2018F

2020F

~$0.1

~$0.1

Engineering / technology
SG&A consolidation
Sourcing
Manufacturing

~$0.1
~$0.1
~$0.1
~$0.0

Total cost synergies

~$0.3

Growth

<$0.1

Consolidate footprint in global

manufacturing centers of excellence
Execute GE2GE (e.g. Power Conversion)
Leverage GE + Alstom volume in
sourcing

39

Synergies in action
Product cost
Leverage GE Wind scale to Alstom
Onshore and Offshore
Supply chain synergies for key
commodities across the segments
(steel, blades, castings, etc.), in
particular in China
Implement GE product line
management and should-cost models
Relentless focus to bring product cost
down every year direct material
deflation and logistics playbooks

Brazil
Leader for Renewable Energy in LATAM
Combination creates 3.3 GW Onshore
Wind backlog
Allows synergies on overhead,
supply chain & manufacturing
Strong focus on project execution
Leverage Hydro facility to absorb more
GE volume
Cost-efficient production platform
Total base of ~2,700 employees
Strong pool of talent for GE
40

New businesses in GE Renewable portfolio

Hydro

Offshore Wind

2014 financials ($B)

$1.3

Service

0.4

Equipment

0.9

Orders

$1.7
0.3
1.4

Revenues

Global leadership with world-class

technology for large plants & project
execution expertise

Scope: turbine sales & commissioning

+ O&M contracts; no construction/
installation risk

Building a stronger services franchise

25% of global installed base
Utilizing GE service / digital

Second largest project pipeline in the

industry today (2GW) first OEM in US

Leverage fully invested global

manufacturing base

Key focus on product cost reduction

and continued R&D
41

Renewable Energy 2018 roadmap

Leader in Renewable Energy - globally and in all major regions
2/3 of revenues generated outside of the US
New businesses (Offshore, Hydro, Solar) to represent more than 1/3 of revenues
Unrivalled service/digital franchise
Revenues ~$10B with margins 5-10% and strong returns
First-in-class project execution expertise

A global, diversified business delivering high return on investment

42

Grid

THE NEW ENERGY MANAGEMENT

~$12B 14 REVENUE/~47,000 EMPLOYEES/>150 COUNTRIES
GRID
SOLUTIONS

POWER
CONVERSION

INDUSTRIAL
SOLUTIONS

Paris,
France

Paris,
France

Plainville,
CT, USA

EXPERTISE &
SCALE

INTEGRATED
SOLUTIONS

WORLD-CLASS
PRODUCTS
44

GE Company Proprietary & Confidential GE 2015 All Rights Reserved

Grid Solutions strategy

($ in billions)

Strategic imperatives

Revenue
~$6

4.7

1 Integration
Execution, cultural transformation,
compliance focus on backbone &
enterprise processes

2 Organization
1.4

2014

2015E

Environment
+ Aging assets driving need for
replacements in NAM & EU
+ Cross-border transmission projects &
renewable integration in EU & US
Emerging market slowdown, oil price
pressure remains

Product line/ regional execution

Strong global supply chain

3 Growth
Drive products into end markets
through our combined strengths
Grow EBoP
Develop global services model on
large installed base & upgrades
45

Alstom reported revenue on GE calendar basis, converted at average FX rates for each year

Alstom Grid portfolio fit

Power

Solutions

HVDC

Equipment

Sub. Auto.

Software

Deal gives GE EM scale in attractive T&D space

46

Grid synergies

($ in billions)

Cost synergies

Synergy examples
~$0.5

Sourcing, manufacturing, technology

Competitive and optimized
organizations
Deflation on overlapping spend
Supplier/ indirect sourcing benefits
Optimize GE2GE / GE4GE

~$0.4
~$0.2

2016F

Cumulative
investment ~$0.1

2018F

2020F

~$0.2

~$0.3

+ Manufacturing & services

$-

+ Sourcing

0.2

+ SG&A consolidation

0.3

+ Engineering/technology
Total cost synergies

+ Growth synergies

~$0.5B

~$0.3

SG&A
Functional synergies simplification /
streamlining

Growth
Electrical balance of plant
Expand Alstom in North America
Complementary platforms
47

EBoP connected solutions $2B+ by 2018

Advanced Analytics

Power
generation

Power
Island

Power Evacuation
High voltage switchyard

Grid

Consumer &
Industrial

Control & Automation Systems

Growth in global electricity demand requires connecting new power generation to the grid
Utility, Grid & industrial operators require flexibility, speed, efficiency and simplification from their electrical systems

Expanded scope improves competitiveness on

cost and speed
Pulls from across EM controls, grid, MV/LV and
power electronics
Align with GE Power, O&G, Renewables & EPCs on
reference designs

OneGE approach to customers empower regions

Integrated system efficiency + an enabler for GE
Digital
Meaningful only ~5% penetration with GE Power
today
48

Predix adoption for Grid Software Solutions

Asset Control
Missioncritical/real-time controls
SCADA - on premise based
Reliability & cyber security focus
Tied into field operations

Adopt Predix Core UI/UX, Analytics and Security Services

Control Room, Operations, Mission-Critical

Asset Optimization
Close to real time analytics

Productivity and efficiency focus

Big Data cloud based
Tied into planning and maintenance
Leverage complete Predix stack and Industrial Cloud
Big data, Optimization/Efficiency, Investment/$

Creating a ~$500M software business

49

Financial update & wrap up

Financial summary
($ in billions)

EPS outlook

Financial dynamics
$.15-.20

4Q15E

16F

~$(0.0)

~$0.2

~1.1

Synergy investment

~(0.0)

~(0.0)

Acquisition accounting

~(0.2)

~(0.7)

Deal/integration costs

~(0.0)

~(0.1)

Assumptions

JV minority interest

~0.0

~0.1

2015 loss driven by acquisition accounting

items and deal costs
Alstom operating earnings driven by
delay in deal closing synergies
Synergy investments of ~$1.9B through
2020, booked principally at Corporate
Acquisition accounting items preliminary
estimate subject to change

Segment op profit

~$(0.2)

~$0.6

Operations
Cost synergy benefits

~$.05
$(.01)-(.02)
2015E

2016F

2018F

Corporate charges
Deal costs/synergy inv. ~(0.1)

~(0.5)

Acquisition accounting ~(0.1)

~(0.2)

Net tax benefits

EPS estimate

~$0.3

~$0.7

$(.01)-(.02)

~$.05
51

Cost synergies

$3B
annualized
benefit 2020+

($ in billions)

Synergy investment & benefits

Synergy benefits
Synergy investment

$3.0

$2.8

$2.5
$1.9
$1.1

$(0.5)
2016F

$(0.3)

$(0.1)

$(0.2)

$(0.8)
2017F

2018F

2019F

2020F

Robust synergy pipeline mitigating operating pressure

52

Purchase price walk

($ in billions)

Original gross price

$16.9

Original April 14 before cash

Cash balance

(3.4)

Original price

$13.5

Joint ventures

(3.5)

Revised price

$10.0

Ansaldo/other

0.0

Net adjustments including Ansaldo

Lower cash balance

2.8

Cash usage from operations/timing

FX benefit

Final price
Returns

(2.5)

Expected cash position in April 14

Original price net of cash
Adjustment for JV investments

Original rate /$ 1.37

$10.3
Deal IRR 15%+
Present value of synergies = purchase price
Returns > WACC by 2018
53

Growing in a slow growth environment

(Revenue, in $ billions)

Power

Renewables

Grid

~$32B
~$9B

~$6B

Technical leadership

Diversified product offering

Compete at scale

Win big deals

Apply GE services playbook

+ Digital

Pull through opportunities

EBoP

Increased global reach

Global services model

Product cost & supply

chain efficiency

Software as a service

More content product pull

through
Service portfolio

Competitive global position

Expand regional presence

Well-positioned to compete
54

Other deal updates

Synchrony

Split-off complete 3.2x oversubscribed

$20.4B share repurchase; GE shares 6.6%

GE Capital

~$146B announced signings YTD expect

~$100B closings in 2015
Planning ~$2.5B dividend in 4Q

Appliances

Trial began 11/9 12/7 right to terminate

55

Summary
Alstom acquisition is a critical step in Industrial transformation
Overall economics and strategic rationale unchanged complementary
technologies, global presence, project capabilities, and installed base
Businesses add to and take from the GE Store GE + Alstom benefit
Opportunity to strengthen GE subscale product lines (grid, balance of
plant, steam)
Deal economics:
Underlying operations impacted by deal uncertainty Alstom in
play for ~18 month impacting backlog
Synergy plan well-developed far ahead relative to other
acquisitions $3B+ annualized synergies by year 5
Growth opportunities better than original outlook

Company never better positioned for acquisition integration

56