OUR
STRATEGY
We are repositioning GE to be the
world’s best infrastructure and
technology company, with a smaller
financial services division. Our
focus is on driving infrastructure
leadership, investing in innovation
and achieving a culture of
simplification to better serve our
customers around the world.
75%
PREMIER
INFRASTRUCTURE
COMPANY
25%
INVESTOR GOALS
ENTERPRISE ADVANTAGES
RETURNS
(Industrial ROTC, ex. BD)
INDUSTRIAL
MARGIN GROWTH
Technical leadership & scale
SIGNIFICANT
CASH
~$76B
14.3%
+
+
~17%
15.7%
Growth market capabilities:
breadth & depth
Debt maturity
17%+
Alstom/M&A
Buyback/
Synchrony exchange
Services driving customer
outcomes through analytics
GE dividend
Parent cash, organic
growth & operating
needs
2013
VALUABLE
SPECIALTY
FINANCE
2014E 2015F 2016F
2013
2016
Culture of simplification:
Low cost + speed
2015F-2016F
GE’S STRATEGY
TRANSFORMING THE PORTFOLIO
Over the last decade, we have made significant
strides in transforming our portfolio and focusing
on our industrial leadership. We have grown our
infrastructure platforms with major portfolio
moves, investing in adjacencies and pursuing
opportunities that are closely related to our core.
40%
40%
INDUSTRIAL
CAPITAL
CAPITAL,
INSURANCE
2001
~40%
CURRENT
2014 estimate
~60%
20%
APPLIANCES, NBC, PLASTICS
INDUSTRIAL
Major portfolio moves since 2001
ACQUISITIONS
2002
ENRON WIND ASSETS,
BETZ-DEARBORN
DISPOSITIONS
2007
SMITH AEROSPACE,
VETCO GRAY
2004
AMERSHAM
2013
LUFKIN, AVIO
2011
CONVERTEAM, DRESSER,
WOOD GROUP WELL SUPPORT,
WELLSTREAM
2014
ALSTOM*
2001
2005
INSURANCE
2007
PLASTICS
Reducing the size of GE Capital
2011
NBCU
2014
ANNOUNCED: SYNCHRONY
FINANCIAL IPO, APPLIANCES
$637
In parallel, we have made a concentrated effort
to reduce the size of our Capital business and
align its growth with Industrial earnings.
$365
-$(75)
135
$230
<$300
+
Core:
• Verticals
• Commercial
finance
Peak
3Q’14
2015F
(a-3Q’08 + FAS 167, ex - cash, @ 1Q’10 FX, including disc. ops.
(b-ENI excludes cash and equivalents