Digital Industrial
In
l Company
Compa
Com
mpany
mpan
pany
nyy
What Defines
Wh
ne the
e “Ne
“N
“New
New GE”
GE”
GE
Unmatched
Digital Capabilities
(2016 targets)
Digital
Thread
PredixTM
Connecting 200K machines
through our installed base & digitizing
our engineering, commercial, sourcing
& services functions
Creating a common language
through our cloud-based Industrial
Internet operating platform with
~20K developers & ~50 partners
Industrial
Driving customer outcomes
App Economy through 100+ innovative Industrial
Internet apps
With a Portfolio
of Businesses Connected
Through the GE Store
POWER
RENEWABLE
ENERGY
CAPITAL
APPLIANCES &
LIGHTING
Global
Culture
Digital
Technology
OIL & GAS
ENERGY
MANAGEMENT
TRANSPORTATION
And the Largest,
Most Global Scale
HEALTHCARE
AVIATION
+
REVENUES
BACKLOG
~$120B
$315B
$
$3
3
OPERATING
FOOTPRINT
~180
Countries
6 GE 2015 FORM 10-K
The GE Store
The GE Store is the transfer of technology, talent, expertise, and connections through
GE’s massive, diverse network of businesses and markets. GE’s businesses give and take from
the Store, and in 2015, the company made some great progress.
Value of scale and diversity
↑
LEVERAGING
SCALE
←→
↑
SPREADING
CREATING
SOLUTIONS
IDEAS AND CONNECTING
SOLUTIONS
POWER
RENEWABLE
ENERGY
CAPITAL
APPLIANCES &
LIGHTING
GLOBAL
SCALE
CULTURE &
SIMPLIFICATION
DIGITAL
TECHNOLOGY
OIL & GAS
ENERGY
MANAGEMENT
TRANSPORTATION
HEALTHCARE
AVIATION
Outcome
Outcomes
↑
FASTER
GROWTH
↑
EXPANDING
MARGINS
↑
DEVELOPING
LEADERS
GE 2015 FORM 10-K 7
How We Use the GE Store to Win
Key Differentiators for GE
NEW 2015
Digital
“GE undertook a major reorganization
to create a unified digital business
within the company called GE Digital.”
Bill Ruh
SVP, Chief Digital Officer,
appointed September 2015
DIGITAL REVENUES1
DIGITAL THREAD
COST PRODUCTIVITY
2014
2015
2016
(goal)
$4B
$5B
++
$500M
(2016 goal)
1. For an explanation of GE Digital’s reporting,
see Other Terms Used by GE on page 24.
Reshaping GE as a Digital Industrial Company
A UNIFIED
CORPORATE
ORGANIZATION
DEDICATED DIGITAL
RESOURCES AT
EACH BUSINESS
PRODUCT
MANAGEMENT
Consolidating existing
digital functions into a
new organization
Appointing Chief Digital
Officers in each business
who report jointly to the
business CEO & to GE’s
Chief Digital Officer
and who have digital
resources focused on
each phase of the
product life cycle
COMMERCIAL
GE
Digital
SOFTWARE
ENGINEERING
HEADQUARTERED IN
SAN RAMON, CA
INFORMATION
TECHNOLOGY
OPERATING
PLANS
CORPORATE &
BUSINESSES
ACCOUNTABLE TO
SHARED METRICS
TO DRIVE DIGITAL
SALES
INCENTIVE
COMPENSATION
PLANS
CUSTOMER
+
+
GROWTH
+
UPTIME
+
SAFETY
8 GE 2015 FORM 10-K
SHAREOWNER
EFFICIENCY
+
CAPACITY
+
CREATE
CUSTOMER & SHAREOWNER
VALUE
“We plan to grow
GE Digital from $5B
revenues in 2015 to
~$15B revenues by 2020”
— Jeff Immelt
+
REVENUES
MARGINS
+
RETURNS
GLOBAL SCALE
CULTURE & SIMPLIFICATION
SHARED SERVICES
“GE’s acquisition of Alstom further
strengthens our global footprint by
adding more in-country capabilities.”
“At the start of Year 3 of our shared services
initiative, you can see costs coming down
with the same or higher quality.”
John Rice
Vice Chairman & CEO,
Global Growth Organization
Shane Fitzsimons
SVP, Global Operations
Industrial segment revenues from growth markets1
2010
2014
2015
$27B
Industrial selling, general & administrative (SG&A)
expenses as a % of sales
15.9%
14.0%
13.9%2
2013
2014
2015
$43B
$43B
12% average annual growth rate
GLOBAL GROWTH ORGANIZATION SNAPSHOT
SHARED SERVICES SNAPSHOT2
20
$67B
24,000+
countries with
$1B+ orders
non-US
infrastructure orders
GE leaders &
commercial/services
employees localized in
growth markets
1. GE launched the Global Growth Organization in 2010.
Working at the core of the GE Store to leverage scale & identify innovative
solutions to deliver better outcomes at a lower cost for our customers
43%
6
10,000
of Industrial
functions
global
functions
employees
(up from ~6,000 in 2014)
2. Excluding Alstom.
TECHNOLOGY
LEADERSHIP
“Technology sharing across businesses
provides a higher return on capital
compared to single-use technologies.”
“Our new Performance Development approach
emphasizes day-to-day development —
driving accountability, better customer
outcomes, and faster, continuous growth.”
Vic Abate
SVP, Chief Technology Officer
Susan Peters
SVP, Human Resources
GLOBAL RESEARCH SNAPSHOT
10
Research
Centers
GLOBAL LEARNING SNAPSHOT
~3,000
3,100+
PhDs, engineers
& scientists
new patents
filed in 2015
SELECTED RECENT PRODUCT LAUNCHES
$1B
50,000
5,000
participants
customers
annual
investment
50
200
countries
locations
PROGRESS: RISING HIGHER
GE Is the World’s Best Company for Global Leaders
#1
LEAP3 Engine
HA-Turbine
Showcases unique technology
developments in additive
manufacturing & advanced materials
2015 orders &
commitments = 1,399 units
World’s largest, most
efficient gas turbine
2015 technical
selections = 82 units
(including 33 units in backlog)
GE ranked #1 in the world on the 2014 Aon
Hewitt Top Companies for Leaders list.
Crotonville, our global leadership
institute, is at the forefront of thinking
in leadership, culture, strategy &
innovation. Some of GE’s best-known
initiatives — Lean Six Sigma, WorkOut,
Simplification & FastWorks — took
shape here.
3. LEAP is a trademark of CFM International, a 50-50 joint venture between Snecma (Safran) and GE.
GE 2015 FORM 10-K 9
Connected Multi-Business Portfolio
as a Competitive Advantage
How We Are Performing
Consolidated
Revenues
$113.2B
Earnings from
Continuing Operations
Attributable to GE
Common Shareowners
3% 0%
$117.2B $117.4B
25%
$7.6B
$9.5B
83%
$1.7B
2013 2014 2015
Great infrastructure
businesses built upon
technical & market
leadership
critical scale
to take advantage of global
demographic trends
Year
Event
Diversity provides
strength through
disruptive events &
commodity cycles
Each business contributes
to GE by providing unique
expertise to the GE Store &
leverages the GE Store to
compete more effectively
Industrial Operating +
Verticals Earnings1
9%
$10.3B $11.3B
Businesses
Businesses Mitigating
Impacted Impact
2013 2014 2015
GE
Response
16%
$13.1B
2013 2014 2015
Outcome
GE CFOA
2001
9/11
attacks
Invested
in next-gen
aircraft
engines
GE 90, GEnx,
next-gen CFM
Invested
to diversify
energy
businesses
Stronger, more
diversified
energy
businesses
$16.4B
$15.2B
$14.3B
$12.2B
$12.1B
Most other
businesses saw
double-digit
growth
Financial
crisis
Supported
Industrial
GE Capital with
businesses
generated ~$17B cash infusions
of cash flow
(as originally
reported)
$6.0B
$4.3B
GE Capital
Dividend
U.S. gas
turbine cycle
bottom
Industrial CFOA 1
$8.3B
2004
$3.0B
2013
2009
Smaller GE
Capital that
is stronger &
more focused
2014
2015
Industrial
Backlog
$249B
$315B
$266B
$226B
$195B
Restructured
Oil & Gas and
acquired Alstom
energy businesses
at attractive price
S ervices
Oil price
drop
Equipment
$185B
2015
$64B
2013
$89B
$71B
2014
2015
HOW CAPITAL VERTICALS
CALS CONNECT TO INDUSTRIA
INDUSTRIAL
AL
A
Financing infrastructure investments
vestments through
Energy Financial Services, GE Capital Aviation
ce, including
Services & Industrial Finance,
nce
Healthcare Equipment Finance
Segment Gross
Margins2
80bps 80bps
Industrial Operating
Profit Margins1, 3
160bps 110bps
27.4% 26.6% 27.4%
15.3%
12.6% 14.2%
2013 2014 20151
2013 2014 2015
1. Non-GAAP Financial Measure. See Financial Measures That
Supplement U.S. Generally Accepted Accounting Principles (Non-GAAP
Financial Measures) on page 95.
2. Excluding Alstom.
3. Including Corporate, excluding Alstom, restructuring and other & gains.
10 GE 2015 FORM 10-K