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2008 Farnborough Airshow
GE AviationJuly 15, 2008
GE job title/2Farnborough Airshow
July 15th, 20082
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 often contain words
such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will."
Forward-looking statements by their nature address matters that are, to different
degrees, uncertain. For us, particular uncertainties which could adversely or
positively affect our future results include: the behavior of financial markets,
including fluctuations in interest rates and commodity prices; strategic actions,
including dispositions; future integration of acquired businesses; future financial
performance of major industries which we serve, including, without limitation, the
air and rail transportation, energy generation, media, real estate and healthcare
industries; unanticipated loss development in our insurance businesses; and
numerous other matters of national, regional and global scale, including those of a
political, economic, business, competitive and regulatory 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.
GE job title/3Farnborough Airshow
July 15th, 20083
• ’07 op profit up 15% … 2Q’08 up 10%
• Tough fuel environment for customers … GE engines provide fuel advantage
• GE and Snecma partnership renewed for the next lifecycle
• GEnx certified Boeing 787 … certification in process for Boeing 747-8
• Systems … meeting acquisition expectations … positioning for growth
• F136 … won FY’08 funding
• Selected on all three key advanced programs for next generation combat
aircraft, transport aircraft, and medium helicopter
• Growth in Business & General Aviation … Walter Engines acquisition
What’s new since Paris
GE job title/4Farnborough Airshow
July 15th, 20084
’07 annualized revenue portfolio
$4.5 $6.8 $3.5
(a- Systems & Unison Engine Components estimated total year 2007 revenue(b- Includes GE’s 50% of CFMI & EA
CFMI is a 50/50 JV between GE and SnecmaEA is a 50/50 JV GE and Pratt & Whitney
$2.2
Unison Engine Components
$0.4
A leading aviation technology business
Commercial engines
Commercial engineservices
Military engines & services
’07 Revenue
’07 Revenue
–b)
–a)
Systems Business & General Aviation
$0.4
($ in billions)
GE job title/5Farnborough Airshow
July 15th, 20085
Aviation
Commercial engines
• ~2,250a) deliveries in ‘08 … +9%
• ~23Kb) engine installed base
• 11% spare parts growth through 1H’08
Military engines
• 45% unit & 4% spares growth in ’08
• Key programs on new & long term applications
Systems
• 6% revenue growth in ‘08
• Delivering on deal model
Great business model
(a- ~1,350 ‘08 deliveries CFM, ~40 ’08 deliveries EA(b- ~14k of ’08 installed base CFM, ~30 of ’08 installed base EA
CFMI is a 50/50 JV between GE and SnecmaEA is a 50/50 JV between GE and Pratt & Whitney
’08 business overview
($ in billions)
2005 2006 2007
Revenue
Segment profit
$11.8
$16.8
$2.5$2.8
+19%
+13%$3.2
$13.0
’05-’07CAGR
GE job title/6Farnborough Airshow
July 15th, 20086
Commercial engine volume
2005 2008E 2011F
2,250
2,765
1,477
CFM56
CF34 CFM56
CF34
CFM56
CF34
GE90/GEnx/CF6
GE90/CF6
GE90/CF6
Yearly shipments (units)
CFM56 shipments of ~769 in ’05, ~1,350 in ’08 & ~1,400 in ’11CFM56 backlog of ~6K & ~14K installed baseCFMI is a 50-50 JV between GE and SnecmaEA shipments of 40 in ’08 & ~70 in ’11EA backlog of 312EA is a 50-50 JV between GE and Pratt & Whitney
GP7000
GP7000
Installed
base
23,000
CF34
GE90/CF6
CFM56
9,400
CF34
GE90/GEnx/CF6
Backlog
GP7000
CFM56
Single aisle
Regional
Wide body
Installed base enables service growth
GE job title/7Farnborough Airshow
July 15th, 20087
Growth in commercial services
coverage
0
5
10
15
20
25
30
35
2005 2008E 2011F
Annual departures (millions)
$80B
2Q08 2011F
$52B
Commercial CSA backlog
Extensions& new
Currentbase
40% 47%
Source ACAS data and GE AnalysisCFMI is a 50/50 JV between GE and Snecma
20%
44%
GE job title/8Farnborough Airshow
July 15th, 20088
Relative to competitor engine applications*
0
(1)
(2)
(3)
(4)
(5)
(6)
GE advantage
Delta block fuel (%
)
787-8
Aircraft company data
GE engines … fuel efficiency advantage
* @ 3,000 nm unless stated
787-9
(1.0)(0.8)
777-200 / ER
(5k nm
)
(3.2)
(2.4)
767-300ER
(5.2)
(1.5)
A330-200
(1.4)(1.2)
A330-300
(1.3)(1.0)
747-400
(2.0)
(0.2)
Aircraft company assessment
GE job title/9Farnborough Airshow
July 15th, 20089
World fleet fuel efficiency
Limited exposure to retirement candidates
Retirementcandidates
•A300•BAe146•DC-8/-9/-10•Fokker•L-1011•MD-80•Russian•707/727/737JT•747-1/-2/-3
Redeploymentcandidates
•A300-600/A310•A320 old•A340•MD-11•MD-90•50 pax & below RJ•717•737 classics•747-400•757•767
Best-in-class •A320 new•A330•A380•CRJ-700/-900/-1000•E-Jet•MD-11F•737NG•747-400F•777
Aircraft typesClassification Global aircraft GE & CFM aircraft
4,101
21%world fleet
331
21%world fleet
268
7,205
38%world fleet
4,238
2,269
1,969
7,963
41%world fleet
5,675
4,142
1,533
CFMI is a 50/50 JV between GE and SnecmaSource: IATA, GE analysis
GE job title/10Farnborough Airshow
July 15th, 200810
GEnx-1B for Boeing 787
• Certified March 31st, 2008
• 3rd flight test campaign in process
GEnx-2B for Boeing 747-8
• Engine type certification 2Q‘09
• Entry into service September 2009
GEnx program status
GE job title/11Farnborough Airshow
July 15th, 200811
GEnx video
11GE – Aviation
7/14/2008
GEnx video
GE job title/12Farnborough Airshow
July 15th, 200812
Service at Emirates … August 1st, 2008
• Dubai to New York (JFK)
• Dubai to Chicago (ORD)
• Dubai to San Francisco (SFO)
Impressive results
• Best fuel burn engine on A380
Over 350 engines ordered to date
Engine Alliance powered Airbus A380
EA is a 50/50 JV between GE and Pratt & Whitney
GE job title/13Farnborough Airshow
July 15th, 200813
Winning with customer’s prioritiesCustomer working to upgrade combat capability on select programs
• C5-M engine replacement program
• F110 SLEP (service life extension program)
• F404 SLEP (service life extension program)
• TF34 PUP (propulsion upgrade program)
Winning international programs
• Australian Air Force F414 … powering F/A-18E/F
• Royal Saudi Air Force F110 … powering F-15S
• Singapore Air Force F110 … powering F-15SG
• Turkish Air Force F110 … powering F-16E/F
US Army rotorcraft ops in IraqThousand flight hours/month
+50%
• ~70% of flying hours on GE engines
• ’08 turboshaft shipments up ~40%
Ops & maintenance costs up 2x in 10 yrs ... headwind to fleet recapitalization
GE well-positioned to support operational requirements
'03 '08
18.5
28.6
GE job title/14Farnborough Airshow
July 15th, 200814
Key military development programsF136 GE38
Critical design review completed 1Q’08
First engine to test scheduled for 4Q’08
Up to 5,000 aircraft potential
Most modern technology engine in its class
• 10%-20% lower fuel consumption
• 50%-80% life cycle cost advantage
More power for growth platforms
CH-53KFirst flight 4Q‘11
2008 2010 20122009 2011
F136 1st flight
First F136deliveries
CriticalDesignReview
FETT
GE job title/15Farnborough Airshow
July 15th, 200815
Advanced military programs
ADVENT(Advanced VersatileEngine Technology)
HEETE(Highly Efficient Embedded
Turbine Engine)
AATE(Advanced Affordable
Turbine Engine)
USAF
• Next generation fighter / bomber
• Multi-mission flexibility & efficient supersonic flight
• Next generation tanker / transport
• 25% improved fuel burn over current fleet
• Next generation attack / utility helicopter
• 67% increase in shaft horse power
• 25% improved fuel burn
GE job title/16Farnborough Airshow
July 15th, 200816
Systems business overviewProviding civil and military aviation systems solutions throughout the world
• ~16K products … more than 500 customers … for over 400 platforms
• Global footprint … 6 countries … 24 main locations
• Realizing synergy savings … ~700 headcount out … 7 sites restructured
• Positioning for growth
Civil Military
B747-8
A380 B787
G650
F35
V22
Eurofighter
F/A18
C130J
$1.0’07 Revenue–a) $1.2
(a- Systems estimated total year 2007 revenue
($ in billions)
GE job title/17Farnborough Airshow
July 15th, 200817
Systems products overviewMechanicalElectrical PowerDigital
Offerings ‘07• Information systems ~$130• Displays ~$120• Flight management ~$100 • Platform computing ~$90• Mission management ~$90
CustomersBAE Systems BoeingAirbus Lockheed Martin
Applications
• Others: B777, B737, F-16, F-22, P-8A, Hawk,
F/A-18E/F, C-130J & AMP
Offerings ‘07• Distribution & management ~$80• Control & conversion ~$60• Generators & starter/generator ~$50
CustomersBoeing Bell / BoeingLockheed Martin Northrop Grumman
Applications
• Others: F/A-18E/F, F-35, V-22, AH-64D
Offerings ‘07• Actuation ~$270• Aero-structures ~$260• Landing gear ~$170• Propellers ~$80• Mission systems ~$40
CustomersBoeing BAE SystemsAirbus Lockheed MartinEmbraer Raytheon
Applications
• Others: B787, A320, Hawk, KC-767 Global Tanker
B787 A320 Eurofigher B777 C-130J C-17 A380 B737 JSF
($ in millions)
GE job title/18Farnborough Airshow
July 15th, 200818
Business & General Aviation sector
Product sales
2003 2006
$8
$16
2016F
$25
Source: GAMA, industry sources
structures high lift systems landing gear
power distribution flight control actuation wing structures
engine nacelle integrated avionics displays
Growth through differentiated products• Engines
• Systems
• Outstanding service & support
Record ‘07 business jet deliveries … 1,138
• ~$19B value
• International >50% orders
GE productsSector overview($ in billions)
+9%
’03-’ 16FCAGR
GE job title/19Farnborough Airshow
July 15th, 200819
Business & General Aviation products
• GE and Honda technology
• Designed to achieve superior
fuel burn performance
HondaJet Spectrum S-40 Let L410 KingAir C90
• M601 … economical and
robust engine
• Utility aircraft and retrofits
Aviation Systems
• Technology integration
• Propulsion systems
• Electric power
• Avionics
• Health monitoring
• Solutions for over 20
platforms
GE job title/20Farnborough Airshow
July 15th, 200820
Announced at Farnborough … eCore Scalable design … state of the art
Regional jets
Narrow-bodies
Business aircraft
30K
10K
Advanced turbofan
Open rotor
Thrust range
Architecture options
eCore technology Multiple applications
or
GE job title/21Farnborough Airshow
July 15th, 200821
Announced at Farnborough
CFMI is a 50/50 JV between GE and Snecma
GE job title/22Farnborough Airshow
July 15th, 200822
Announced at Farnborough
CFMI is a 50/50 JV between GE and Snecma
GE job title/23Farnborough Airshow
July 15th, 200823
• Strong performance in ’07 … technology
investments differentiates business for ’08+
• Unprecedented commercial engine volume …
driving long term service revenue
• Engine entry into service on 4 new
commercial applications by ‘10
• Military winning in a tough environment …
developing next generation products
• Systems delivering synergies … positioned for
civil and military growth
• Stronger focus on Business & General Aviation
Partnerships & portfolio positioned for growth
Aviation summary
2008 Farnborough Airshow
GE AviationJuly 15, 2008