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Tim Schweikert

June 29th, 2011

Innovation Beyond BoundariesGE in China title will go here

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Our vision

Help solve China’s toughest problems and improve the quality of life by being a leader in • China-based global partnerships• Innovation catalyst• Clean: energy, transportation, water • Innovative healthcare • 21st century leadership talent development

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• Achieve environmental sustainability … increase clean energy contribution (11.4%); reduce consumption per unit of GDP: water 30%, energy 16%, carbon dioxide emission 17%

• Improve social well-being … per capita income growth >7%, expand social pension schemes & basic healthcare insurance coverage at 94% of population (+3 points)

• Commit to reform & opening-upState-sector reform

Factor prices & interest rates marketization

Gradual RMB internationalization

Int’l trade: orient to both imports & exports

Investment policy: equal emphasis on FDI inflow and Chinese companies’ outbound investment

•12th FYP •(2011-2015)

•Target•Actual •Target •Est.

•11th FYP •(2006-2010)

•Inland China: industrialization, urbanization& infrastructure construction

•Coastal China: economic transition

Transformation

• Drive balanced development … GDP ~7%; boost domestic consumption and contain CPI < 4%

Sustainable growth & Social harmony

•GDP Growth

• Close regional & rural development gap…urbanization 51.5%

• Accomplish new industrializationPush for innovation … R&D at 2.2% GDP

Upgrade manufacturing

Develop 7 new strategic industries

Promote services

China’s 12th Five Year Plan

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Solving China’s toughest problems

Positioning GE as China’s preferred partner

• Launched in China in 2009• Extensive partnership with MOH

Spring Wind Initiative targeting primary care sector Various public health awareness projects

Pink October (Breast Cancer) Preventive campaign against brain stroke

5 China sites certified by healthahead• 12th five year plan

Rural distributionLocal customer innovationInformation technologyMultiple price points

Globalrevenue

~$21B

• Eco MOU signing with NDRC in 2006, extended partnership in June 2011

Reduced GHG emissions by 22%, improved energy intensity by 34% by 2009Eco revenue growth at 88% from 2007 to 20092011 Eco sales in China: $689MM31+ Eco products are already applied in China

• 12th five year planEV infrastructureShale gas/IGCCEnergy efficiencyRenewables

Clean Energy Affordable Healthcare

$6B investment

100+ products

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Premier Wen Jiabao Dec. 2003

“Bring to China GE’s…1.Products2.Technology3.Management process4.Talent development5.Sino-U.S. friendship6..long term”

Vice Premier Li KeqiangMay 2009

“GE has leading technology and China has huge market and opportunities. I can see the cooperation is not only on the upgrading 10 industries by hi-tech but also, most importantly, the new industries. ”

A deep relationship with China

GE -- A glue of US-China economic relationship, one of the world’s most important bilateral trade ties.

President Hu JintaoJan. 2011

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Invest $2B in R&D,Technology and Financial Services Partnerships- $500MM to build Innovation Centers

Build the Innovation Centers where we can ‘co-create’ with customers to solve their greatest challenges

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First phase – Chengdu, Xi’an, Shenyang

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GE’s involvement in China’s rail industry developmentChina Mainline Locomotives CML• 300 CML already in operation in china railway networks, 300

more in the pipeline

JVs• A joint venture company with CSR Qishuyan Locomotive Co., Ltd. to develop, build and service GE’s

Evolution® Series locomotive diesel engines in China. • A framework agreement to form a 50/50 joint venture with Chengdu Locomotive & Rolling Stock Works, a

company owned by CSR to develop propulsion system sets, sub assemblies and parts for diesel locomotives.

• An agreement to enter into a 50/50 joint venture with Beijing National Railway Research & Design Institute of Signal & Communication (CRSCD) to supply railway and urban transit signaling systems.

US CSR + GE JV• Collaborate with MOR + CSR on HSR, Metro and Light Rail

opportunities in North America and other international markets.

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Offices

Plants

R&D center5,400 employees … 95%+ local leadership

6 manufacturing, 3 design centers

700 design engineers

166 product portfolio

22,600 installed base

GE's involvement in China's Healthcare projectGE Healthcare to localize innovations: $1B + local business

Logic C-series U/S

100% localized

Cost

Starlight X-ray

Increase uptime

Quality

Brivo CT 315/325

63% sold to 1st buyer

Access

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GE's involvement in China's big passenger plane project•CFM International, the 50/50 venture between GE and SAFRAN Group, will

develop its first engine to incorporate next-generation technologies by launching the LEAP-X1C engine for the C919 single-aisle aircraft

• A joint venture between GE Aviation and Aviation Industry Corporation of China (AVIC) to develop and market new generation avionics systems with an immediate priority on supporting development of China’s first home-grown big passenger jet.

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Challenges & opportunities

• IP protection …indigenous innovation

• Government …level playing field

• Global innovation vs Regional innovation

• Execution risks …policy changes

• Relationships …bridging cultural differences

• Leveraging China’s global aspirations