GE Aviation Jefferies Investor Visit

GE Aviation Jefferies Investor Visit
GE Aviation
Jefferies Investor Visit
May 12th 2014

Imagination at work.
GE Aviation Jefferies Investor Visit
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,” or “will.” Forward-looking
statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could
cause our actual results to be materially different than those expressed in our forward-looking statements include: current
economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the
value of financial assets; the impact of conditions in the financial and credit markets on the availability and cost of General
Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of
conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability
to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the
adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the
planned level; the level of demand and financial performance of the major industries we serve, including, without limitation, air
and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and
regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation;
strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous
other matters of national, regional and global scale, including those of a political, economic, business and competitive 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 PROPRIETARY INFORMATION | Jefferies Investor Visit    GE Aviation                 2
GE Aviation Jefferies Investor Visit
Business overview




             GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   3
GE Aviation Jefferies Investor Visit
“I find out what the world needs,
 then I proceed to invent it.”
                   – Thomas Edison




                      GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   4
GE Aviation Jefferies Investor Visit
GE Aviation executive team
         David L. Joyce
         President & CEO

                  Commercial                     Aviation Systems and                   Sales &                                 Finance
                    Engines                       Digital Engineering                 Marketing
                 W.A. Fitzgerald                   and Technology                   C. A. Chahrour                            S.M. Wright
                  Vice President and                   J.W. Daily                    Vice President and                     Vice President and
                  General Manager                     Vice President                 General Manager                       Chief Financial Officer


                      Services                      Supply Chain                       Marketing                               Human
                                                                                                                              Resources
                  K.G. McAllister                    C.B. Athans
                  Vice President and                Vice President and                L.C. Rouaud                            E.W. Marshall
                  General Manager                   General Manager                Chief Marketing Officer                    Vice President



               BGA & Integrated                   Assembly, Test &                  CMCs Program                          Chief Information
                   Systems                           Overhaul                                                                   Officer
                 B.D. Mottier
                  Vice President and                  A.J. Aiello                     S.M. Correa                               T. Kantor
                  General Manager                     Vice President                   Vice President                        General Manager



                Military Systems                       Services                    Legal & Business                      Global Government
                                                     Engineering                    Development                              Relations
              J. M. Lydon-Rodgers
                  Vice President and                 J.M. Rosario                    M.R. McAlevey                            P. Prowitt
                  General Manager                     Vice President                   Vice President                      Executive Director



                  Avionics &                         Engineering                       Business
                Digital Systems                                                      Development
                                                    M. Ehteshami
                  A.C. Caslavka                     Vice President and              W.J. Godsman                        Attending
                    Vice President                  General Manager                  General Manager



                     Avio Aero                      Technology &                   Communications &
                                                     Sciences and                    GE Advantage
                    R. Procacci                     Chief Engineer
                 Senior Executive and                                                   J.R. Regg
              Avio Chief Executive Officer
                                                      G.D. Mercer
                                                      Vice President                  Senior Executive
                                                                                                                             Effective: May 2, 2014




                           GE PROPRIETARY INFORMATION | Jefferies Investor Visit                          GE Aviation                                5
GE Aviation Jefferies Investor Visit
GE Aviation portfolio … $22B
                                                                              –1)




Commercial engines                      Commercial engine                                    Military engines
$6.8   –2)
                                        services $7.9 –2)                                    and services $4.1




BGA and Integrated                     Avionics and Digital
Systems $1.5                           Solutions $0.8                                                                                            $0.8




 General aviation engines              Avionics                                               Power Transmissions
 Power, mechanical, electronics        Digital Services                                       Turbo machinery

A leading provider of jet engines, services and systems                                                                              -1) Based on 2013 revenue
                                                                                           -2) includes GE’s share revenue from 50-50 CFM and EA joint ventures



                                   GE PROPRIETARY INFORMATION | Jefferies Investor Visit                   GE Aviation                                  6
GE Aviation Jefferies Investor Visit
Technical innovation …
at our core


U.S. jet engine
U.S. turboprop engine
High bypass engine
Composite fan blade in airline service
120,000+ lb thrust engine
Modular power tile
FMS-controlled Unmanned Aircraft System




                        GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   7
GE Aviation Jefferies Investor Visit
Powering the world’s airline fleets
Every 2 seconds , an aircraft
with GE engine technology* is
taking off somewhere in the
world.
At any given moment, more
than 2,200 of these aircraft
are in-flight, carrying between
50 and 500 passengers.
That's more than 300,000
people... right now... who are
depending on our engines.
                                                                                 *Includes joint venture engines built by CFM and EA
                                                                            CFM International is a 50/50 JV between GE and Snecma
                                                                                                 EA is a 50/50 JV between GE and PW

                    GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation                                   8
GE Aviation Jefferies Investor Visit
Powering the world’s military fleets

2 of every 3 helicopters in the US
fleet are powered by GE

3 out of every 4 combat surface
vessels in the Navy’s fleet are powered by                                                                                                   *

GE Aviation and all of the Navy’s carrier
combat aircraft

Half of the bombers in the Air Force
fleet are powered by GE Aviation

2 out of every 3 fighters in the U.S.
fleet are powered by GE Aviation
                                                                 Engine fleet:               24,900
                                                                                              *Includes joint venture engines built by CFM
                                                                                  CFM International is a 50/50 JV between GE and Snecma


                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation                                   9
GE Aviation Jefferies Investor Visit
Global revenues


     Total U.S.   Total Intl
    Revenues -1   revenues                                                 Other
       $9.2B       $12.8B                                                   2%
                                                                               Lat . America,
      42%           58%                                                        Canada
                                                                     MENAT     11%
                                                                      22%


                                                                                      Pacific Basin
                                                                                          35%
                                                                        Europe
                                                                         30%




                                                                                               -1) 2013   revenues


                         GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation                    10
Global backlog

    U.S. backlog
        $31B -1

       25%                                                                           Other
                   Intl backlog                                                       3%
                       $95B                                                              Lat . America,
                      75%
                                                                                         Canada
                                                                                         10%
                                                                    MENAT
                                                                     34%

                                                                                              Pacific Basin
                                                                                                  41%

                                                                                Europe
                                                                                 13%


                                                                                                        -1) 2013   backlog


                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit        GE Aviation                   11
GE Aviation facilities around the world

                                                                 Europe
North America                                         Czech Republic
Canada
                                                                    France                        Asia
Mexico
                                                                Germany                    Australia
U.S.A.
                                                                 Hungary                         China
            South America                                          Poland                         India
            Brazil                                              Romania                          Japan
                                                                    Turkey                       Korea
                                                     United Kingdom                        Malaysia
                                                                        Italy            Singapore
                                                                                                Taiwan
                            44,000 employees                                                  Thailand
                            79 manufacturing sites
                            11 Engineering centers

                         GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation              12
A great GE business
($ in billions)                     $21.9 CAGR
                                                    8%
                      $20.0
                                                                        Strategic imperatives
             $18.9
Revenue
                                                                        • Grow installed base and
                                                                          services
                                      $4.3                              • Lead in next-generation
Op profit             $3.7
             $3.5                                                         products
                                                                        • Position supply chain
              '11      '12             '13                                for product volume growth
R&D           $1.5B   $1.6B           $1.8B                             • Build out digital services
Deliveries    2,918   3,296           3,513                               for customer productivity
Installed    56,000   57,000         58,000
Base
                                                                                 Deliveries and installed base includes GE and JV partners volume.
                                                                                                        2012 Deliveries: GE 1,837; CFM 1,382; EA 77
                                                                                                       2012 Installed base: GE 40K; CFM 18K; EA .2K
                                                                                                         CFM is a 50/50 JV between GE and Snecma
                                                                                                  EA is a 50/50 JV between GE and Pratt & Whitney


                         GE PROPRIETARY INFORMATION | Jefferies Investor Visit                  GE Aviation                                   13
Cost efficiency
  ($ in millions)

  Product cost-out                                               Simplification
                                           $210
                       $200
               $180                                               • Delivering supply chain
                                                                    productivity
                                                                       − Global footprint
               2011    2012                2013
Productivity   2.0%    2.5%                2.5%                        − Lean, deflation, teaming

  SG&A cost                                                       • P&L delayering and
               1,490   1,465                                        consolidation
                                                    -1)
                                          1,410
                                                                       − Disposition of 10+ sites
                                                                         since 2011
                                                                       − Global shared services
               2011    2012                2013
 % revenue      8%      7%                  7%
                         1) Excludes Avio acquisition SG&A



                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation    14
Commercial engines




             GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   15
Commercial power for today … and tomorrow
Regionals
CF34®
Passport
CT7               Bombardier             EMBRAER                       Saab 340                         ACAC ARJ21                      Global 7000/8000
                  CRJ200/700/900         170/175/190/195




Single Aisle
CFM56*
LEAP*
                  Boeing 737             Airbus A320                   Airbus A320neo                   Boeing 737 MAX                  Comac C919




Twin Aisle
CF6
GEnx
                  Boeing 767             Airbus A300/310/330           Boeing 787




Jumbo
Twin Aisle
CFM56, CF6/GEnx
GP7200**, GE90,   Airbus A340-200/-300   Boeing 747-200/-300/-400      Airbus A380                      Boeing 777                      Boeing 777X
GE9X                                     Boeing 747-8


                                                    *CFM, CFM56 and the CFM Logo are trademarks of CFM International, a 50/50 joint company of Snecma and GE
                                                                                         **GE-P&W Engine Alliance is a 50/50 joint venture with Pratt & Whitney


                            GE PROPRIETARY INFORMATION | Jefferies Investor Visit                               GE Aviation                                 16
Commercial Equipment Growth
Environment                                Production volume                                      In-service fleet
                                           # of GE and JV engines (-1                             # of engines ‘000

              Passenger
              demand                                                                                                                        44
              (IATA, RPK % YoY)

                                                                             3,300                                      36
5.3                 5.2           5.8                           3,000                                  33
                                                                                                                                             26
2012                2013          2014F         2,600
                                                                                                                         20
                                                                                                       18
              Load factors
              (%)

                                                                                                                                             18
                                                                                                       15                16
79                  80+           80+
 2012               2013          2014F            '13          '15F          '20F                    ’13              ’15F                ’20F

              Jet fuel
              ($/gal)                                                                                   18.7
                                             Airline profits                                12.9
                                             $Billions (IATA)                  7.4

310                 298           293
 2012               2013          2014F                                       2012          2013       2014F
                                               … airlines feeling good                                                  CFM is a 50/50 JV between GE and Snecma
                                                                                                                 EA is a 50/50 JV between GE and Pratt & Whitney
Source: IATA and GE analysis                                                                                              LEAP is a trademark of CFM International
                                                                                                         -1) Production volume approx. 34% GE, 62% CFM, 4% EA

                                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit             GE Aviation                                   17
Commercial orders and fleets
                                                 Europe
                                         51%            47%
                                         20%            11%
                                        In service      Backlog
     North America
                                                                                          China
     30%         50%
                                         Orders        Backlog                     61%                46%
     30%         14%
   In service   Backlog
                                      ($B)               $118                       8%                22%
                                                                                  In service          Backlog
                                          $22
                                                           96
                                  Svs        9
                                                                                                  Asia
                               CEO (-1     13              22                        38%                   36%
    Latin America                                                                    21%                    8%
                                          2013            2013
    45%         48%                                                                  0.4%                   0%
    20%         5%                       Middle East                                 In service            Backlog
   In service   Backlog             21%              24%
                                    33%              21%
                                     7%              6%
                                                                                                  CFM is a 50/50 JV between GE and Snecma
                                                                                           EA is a 50/50 JV between GE and Pratt & Whitney
                                   In service        Backlog                                        -1) CEO orders $6.2 GE, $6.3 CFM, $0.1 EA
                                                                                                     CEO backlog $11.4 GE, $9.6 CFM, $0.7 EA

                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit         GE Aviation                                  18
Growth ahead of demand in all regions
(Aircraft fleet in service)



    North America                               Europe                                               China
 Traffic growth ~ 3%                Traffic Growth ~ 3.5%                             Traffic Growth ~ 7.5%
 Our growth 11%                     Our growth 17%                                    Our growth 22%
   In        ‘12      ’15F            In                                                 In
                                                    ‘12             ‘15F                                     ‘12                    ‘15F
Service                            Service                                            Service
 Fleet    ~3,900    ~4,350          Fleet     ~3,800            ~4,500                 Fleet          ~1,500                   ~1,800


   Latin America                          Middle East                                                  Asia
 Traffic growth ~ 5%                Traffic Growth ~ 6.3%                             Traffic Growth ~ 4.8%
 Our growth 30%                     Our growth 32%                                    Our growth 30%
   In      ‘12       ‘15F             In          ‘12          ‘15F                      In                  ‘12                  ‘15F
Service                            Service                                            Service
 Fleet    ~800     ~1,050           Fleet     ~600           ~800                      Fleet          ~1,750                   ~2,300


                                                                                                           CFM is a 50/50 JV between GE and Snecma
                                                                                                    EA is a 50/50 JV between GE and Pratt & Whitney
                                                                                      Traffic growth is between ‘13-32. Source: GE Aviation Marketing


                              GE PROPRIETARY INFORMATION | Jefferies Investor Visit                GE Aviation                                   19
Commercial services growth
     Environment                                         Departures                                         Shop visits
                                                         # departures (millions)
                                                                                                                                                  5,500
             Passengers
             (IATA, RPK % YoY)                                                                                                                       200
                                                          40                                                                  4,400
                                                                                                             4,100
           5.3      %        5.2    %       5.8 %         35
                                                          30
                                                                                                                                100                3,000
            2012             2013           2014E                                                                              2,300
                                                          25                                                 2,100
                                                          20
             Utilization
             Avg. cycles/ day, % YoY                      15
                                                          10                                                                                       2,300
             -1    %         0.9    %       0.2 %
                                                           5
                                                                                                             2,000             2,000
            2012             2013           2014E
                                                           0
                                                           ‘95       ‘00       ‘05      ‘10     ‘15F          ’13              ’15F                ’20F
             Departures


                                                                                                             $96B
             GE & JV-powered flights (MM)


             20              21             22            2 of 3 daily flights
            2012             2013           2014E
Source: IATA & GE analysis                                powered by GE or GE JV’s                           Services backlog
                                                                                                                            CFM is a 50/50 JV between GE and Snecma
                                                                                                                     EA is a 50/50 JV between GE and Pratt & Whitney


                                                    GE PROPRIETARY INFORMATION | Jefferies Investor Visit        GE Aviation                                  20
Commercial product positioning
Today’s airline                                                                                                           Today’s
service           Installed base (2015F)                                                                              investment
Regional/

                    9,600
Business

                                                                 H80                      HF120                                 GE Passport

Narrowbody

                     20,000                                         LEAP-1A                           LEAP-1B                    LEAP-1C

Widebody

                    6,600                                              GEnx-1B                          GEnx-2B                          GE9X


   ~13,700 engines (backlog)                                                                                 CFM is a 50/50 JV between GE and Snecma
                                                                                                      EA is a 50/50 JV between GE and Pratt & Whitney
                                                                                HF120 is made by GE Honda, a 50/50 JV between GE and Honda Aero, Inc.
                                                                                                               LEAP is a trademark of CFM International


                        GE PROPRIETARY INFORMATION | Jefferies Investor Visit                      GE Aviation                                 21
Powering the world’s regional fleet

                                                                            CF34 engines in service
Bombardier CRJ200/700/900/1000
                                                                                              5,000      5,100

                                                                                   4,600

                                 Embraer 170/175/190/195

                                                                                     '13       '15F      '20F




                                 73
              COMAC ARJ21

                                                                            CF34 shop visit forecast
      156
      operators                                                                                          1,100

                                 MILLION                                           1,000      1,000

      in 67                      flight hours
      countries                                                                      '13       '15F      '20F


                                 GE PROPRIETARY INFORMATION | Jefferies Investor Visit     GE Aviation           22
Preferred power for narrowbody
CFM56 …                                                   LEAP …
               • 26,000 engines                            • 2016 service
                  delivered                                  entry
                    • 30+ years                            • Selected
                      in service                             by Airbus,


630
                                                             Boeing,
                         • 34,000+                           COMAC
                           departures
                                                           • 6,300




                                                                                                        15
                           per day
MILLION                                                      orders and
                                                             commits
                                                                                                                                                   %
flight hours
                   Fleet in service
                                                           • 9,000 a/c
                                   20,300
                                                             opportunity
                 18,800

                                                                                                            L O W E R
                                                                                                              fuel consumption *
                  ’14E               ’20F
                                                                                        *Compared to today’s generation CFM56. Claims based on GE estimates
                                                          LEAP, CFM, and the CFM logo are trademarks of CFM International, a 50-50 JV between Snecma and GE


                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit                          GE Aviation                                 23
Superior fuel burn … today and tomorrow
CF6 …                                                    GEnx …
              • Best-selling                              • Fastest-
                 widebody                                   selling GE
                 engine ever …                              widebody



43
                  7,450 delivered                           engine
                     • 397 million                        • 1,835,000
                       hours flown                          hours flown
                      • ~750 shop                         • 1,600 engines
YEARS                   visits in ‘14                       ordered




                                                                                                        62
in service
                     • 1,600 a/c in                       Engines in service                                                              %
                       operation
                                                                                 2,100           ~
        NEW ENGINE
deliveries beyond    2020                                     630

                                                              '14E                '20F
                                                                                                            W I N R AT E
                                                                                                            B oeing 787
                                                                                                            Airbus A380
                                                                                                                   Claims based on GE estimates
                                                                                     GEnx win rate does not include undecided engine campaigns


                         GE PROPRIETARY INFORMATION | Jefferies Investor Visit               GE Aviation                                 24
Technology leadership in big twins
GE90 …                                                     GE9X …
               • 600 aircraft                           • Service entry
                 on order                                 end of decade
                                                        • Sole source



41
                    • 1,700
                          engines                          on 777X
                          in service                    • 3,000 a/c
                     • With 65                             opportunity
                       operators




                                                                                     5
                                                           Most
MILLION                                                    advanced
flight hours
                    Fleet in service                       engine
                                                           GE’s ever
                                                                                                    %
                                     2,600
                                                           designed                                  BETTER
                                                                                                     fuel efficiency
                  1,700

                                                                                         vs. ANY engine
                  ’14E                ’20F                                               I N        C L A S S
                                                                                                 Claims based on GE estimates

                           GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation                          25
Building on technology investment
   2011                                    2015-2016                                                                     2020
                   Scale and                                              Scale & design
                   design for                                             for higher thrust
                   higher cycle                                           and advanced
                   utilization                                            materials

    GEnx                               LEAP & Passport                                                                    GE9X

E X P E R I E N C E
               Delivering technology
           with customer confidence
                                                                 6000
                                                                 E N G I N E S
                                                                                                                     60M
                                                                                                                      H O U R S


Enabling …                                                   Commercial launches                                                9
• Engineering productivity 10%+                                                 7
                                                                                                 5               5
                                                                   3
• Manufacturing technology readiness
• Supply chain efficiencies
                                                                 70's        80's             90's             00's            10's
                                                                             LEAP is a trademark of CFM International, a 50-50 JV between Snecma and GE
                                                                          Technology experience (engines/hours): CFM: ~4,000/~30MM, GE: ~2,000/~30MM
                                                                                                             Commercial launches: 19 GE, 9 CFM, and 1 EA


                           GE PROPRIETARY INFORMATION | Jefferies Investor Visit                     GE Aviation                                  26
Carbon-fiber composites … only GE

GE90-94B                   GE90-115B                                  GEnx                            GE9X
777-200ER                  777-200LR, -300ER, 777F                    787, 747-8                      Boeing 777X




        ‘95                            ‘04                                      ‘11                           ‘20
 • Wide chord design         • Swept aero                           • Improved efficiency             • Improved materials
  22 blades                    22 blades                              18 blades                           16 blades
2020 fan blade
EXPERIENCE                  Extending

100
million flight hours
                       +    to fan cases
                            • Integrated structure
                            • Saves 700+ lbs per
                              aircraft on 787

                                                                                                             Based on GE estimates


                                  GE PROPRIETARY INFORMATION | Jefferies Investor Visit     GE Aviation                      27
Compression technology … driving efficiency
through pressure
GEnx                                          LEAP & Passport                          GE9X
787, 747-8                                    737MAX, A320neo Global 7/8000            777X


                     2011                                      2015-2016                              2018 Cert

                    23-1
                    Compressor
                                                              22-1                                   27-1
                    pressure ratio




1 technology platform …
4 product applications
Performance claims based on GE estimates
LEAP is a trademark of CFM International, a
50-50 JV between Snecma and GE




                                                        GE PROPRIETARY INFORMATION | Jefferies Investor Visit     GE Aviation   28
Combustion technology
A 20+ year journey of proven                                                               TAPS III (GE9X)
innovation in combustion                                                                   Next-Gen 777

science, materials, and
manufacturing
                                                         TAPS II (LEAP)
                                                         737 MAX, A320 neo                                                  2019

                                                                                                                     • Higher pressure, new
                                                                                                                       standard in industry
                         TAPS I (GEnx)
                         787, 747-8
                                                                                           2015
DAC (GE90-94B)                                                                            • Additive fuel circuit
777-200ER, 777F


                                                    2008
                                                   • Evolution in lean
                  1995                               combustion
                  • Set the industry
                    standard
                                                                                    Leader in NOx technology
                                       GE PROPRIETARY INFORMATION | Jefferies Investor Visit           GE Aviation                 29
Turbine technology
                                                                                       GE9X
                                                                                       Next-Gen 777
Leading edge innovation …
delivering best fuel burn                                    LEAP
                                                             737 MAX, A320 neo


                                  GEnX                                                  2019
                                  787, 747-8
                                                                                        • Advancing Ceramic-
                                                                                          matrix composites
                                                                                        • Advancing metals
      GE90                                                                                technology
      777
                                                                 2015
                                                                 • Advanced Ceramic-matrix
                                                                   composites

                                   2008
                                  • Aero and cooling
                                    innovation

     1995/2004
    • 3D Aero sets industry
      standard

                              GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation          30
Ceramic-matrix composites (CMC) … next
generation of innovation
CMCs are silicon carbide fibers                           Combustor
in a silicon carbide matrix                                                                                    Shrouds


                 Diameter of a
                 human hair


                                                                                                              Blades
                                                                                                         Nozzles




2,400 F   °   500°F hotter
              than metal         + 1/3                       weight
                                                             of metal               =                   better fuel
                                                                                                        efficiency
                                                                     LEAP is a trademark of CFM International, a 50/50 JV between Snecma and GE


                      GE PROPRIETARY INFORMATION | Jefferies Investor Visit                     GE Aviation                                 31
Ceramic-matrix … only GE



       2.3
                                                                                                                       GE9X

                             M                                                  Revenue
                             Hours                                               service
                             by 2019




Research                                                                                                     LEAP


1980       2000               Product Development                                        2016                       2020

            1  st   GENERATION
                                       2    nd G E N E R A T I O N
                                                                         3    rd G E N E R A T I O N


            GE Power                 Aviation                          Aviation
            Turbine shroud           HPT shroud                        HPT nozzles and blades



                GE Frame 7                GEnx     and   T700             ADVENT       and   F414


                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit             GE Aviation                 32
Commercial services




             GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   33
Servicing our customers today and tomorrow
GE & JV engines backlog                                          Service offerings
          Production Services
            (years)    ($B)
CFM/
LEAP         4       $43                       Risk Transfer $/hr comprehensive maint coverage

CF6          6        $6                       Overhaul                      Time and material (T&M) overhaul


CF34         2        $5                       Material                      New, Used, Repaired
GE90/
GE9x         4       $27
                                               Asset
                                                            TRUEngineTM program
                                                            Analytics
                                               Optimization Diagnostics
             6       $13

                                                                                                                    96B
GEnx
                                                                                                               $
GP7000       2        $2                       33,000
                                               engine installed fleet                                                   Backlog
                                                                                         16,300 CFM56 engines. CFM is a 50-50 JV between GE and Snecma
                                                                  120 GP7000 engines. GP7000 is a product of EA, a 50-50 JV between GE and Pratt & Whitney

                         GE PROPRIETARY INFORMATION | Jefferies Investor Visit                        GE Aviation                                 34
Industry leading product portfolio … today and
tomorrow                                                         CF6-80E
                                                                 powered
                                                                                                                      CF6-80C
                                                                                                                      powered
                                                                                                                     widebodies
Engine lifecycle revenue                GE90-powered
                                                                widebodies

                                         Boeing 777

                   GP7200-powered
                        A380
                                                                                                                                                CF6-6/50
                                                                                                                                                powered
 GE9X-powered
  Boeing 777X
                                                                     Parts and                                                                 widebodies

        Design                      New                               Services
       and Test                    engines
                                                                                                                                         40+ Years


                                      CF34 8/10         CFM-5/7 powered
                                      powered             narrowbodies
                                      regionals                                           CF34-3                    CFM-3 powered
                                                                                         powered                     narrowbodies
                                                                                         regionals


 LEAP-powered
 narrowbodies
                  GEnx-powered
                   widebodies                                                             CFM International is a 50/50 joint company between Snecma and GE
                                                                                                Engine Alliance is a 50/50 JV between GE and Pratt & Whitney


                                 GE PROPRIETARY INFORMATION | Jefferies Investor Visit                     GE Aviation                                 35
Well positioned for services growth
Large fleet                          Young fleet                                        Diverse fleet
Installed base                       Engine maturity                                    Segment/geographic
21,000 aircraft in ‘13
                                     Total                                               Type                                    WB
                                     fleet
                                                                                                                                 NB

                                                        1+           0                                                            RJ

                                                        SV          SV                                                           TP




                                                                                         Region
                         CFM         CFM                                                                                      N.Am
                                     7B/5B               1+                                                                   L.AM
                                     fleet               SV         0                                                         Europe
                         GE
                                                                   SV                                                         ME/Af
                                                                                                                              Asia
    ‘90       ‘10         ‘13
   '90       '10         '13
                                                                                                        CFM is a 50/50 JV between GE and Snecma
                                                                                                 EA is a 50/50 JV between GE and Pratt & Whitney
                                                                                          GE Honda is a 50/50 JV between GE and Honda Aero, Inc.

                                GE PROPRIETARY INFORMATION | Jefferies Investor Visit          GE Aviation                                 36
Aligned network of global service partners
• More than 8,000 employees in 10 countries                                    • 400+ services customers worldwide
• 250 field service engineers                                                  • 55+ years of experience (25+ years CFM)
• 450 dedicated customer support representatives                               • Network locations worldwide
     OEM                                                                                                                                  Network
    GE Celma                                                                                                                                CFM56



   GE Strother


                                                                                                                                               CF6
   GE Malaysia                                                                                                                                            EGAT

                                                                                                                                              GE90
                         GE Overhaul Shops
    GE Wales
                         Snecma Shops
                         Network                                                                                                          CF34/CT7


  GE Caledonian
                                                 GE Component Repair                                                                          GEnx
                          Cincinnati   McAllen, TX   Terre Haute     Hungary       Singapore Singapore-ATI
           St. Quentin
           Brussels
           Morocco
           Mexico




                                                                                          CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50
                                                                                                      joint company between Snecma and General Electric Company
                                       GE PROPRIETARY INFORMATION | Jefferies Investor Visit                     GE Aviation                                 37
GE’s tradition: continuous product improvements to
reduce customers’ cost of ownership
                                        I M P R O V E M E N T S
 Installed
 base (‘13)                            Upgrades                     Fuel Burn       Time-on-wing


 CFM56
 ~18,500
                1984 EIS
                                             8                       8%                      2x
 CF6-80C2
 ~3,000                                      8                       3%                      3x
               1986 EIS


 GE90
 ~1,550                                      5                       2%                      2x
               1995 EIS
                                                                                CFM is a 50/50 JV between GE and Snecma


                 GE PROPRIETARY INFORMATION | Jefferies Investor Visit      GE Aviation                             38
Minds + Machines = customer productivity
Big data and predictive                                                Customer outcome
analytics
Predictive Analytics                                                     Operations optimization
Advanced detection methods                                               Zero unplanned downtime /
Rapid data forensics + data sciences                                     disruptions
                                                                         Avoid high cost failures


Fleet segmentation
                                                                         Reduced maintenance burden
Engine and part specific duty cycle
                                                                         Inspections tailored by serial
Analytic based inspection limits … FAA                                   number
approved



Airline operations optimization                                          Improve airlines flight economics
Flight Efficiency Services                                               Optimized policies and procedures
Using analytics to identify operational                                  via data fusion and analytics … fuel
savings                                                                  savings

                              GE PROPRIETARY INFORMATION | Jefferies Investor Visit     GE Aviation         39
Military engines & services




               GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   40
Military … the affordable alternative
Global position                            Proven power for DoD                                        Global In-service fleet
# of engines                               Total platforms                                             # of engines ‘000
2014 installed fleet

                                                          Rotorcraft                                                                             30
                                                             61%                           6,211                         26
                                                                                                                                                            Marine

    14,000                                                                                              25                                        4         Special
                                                          Combat
                       22,600                                                                                             4                       3         Transports
                                                            64%                            3,403         4
                                                                                                                           3
       15,700     2,300                                                                                  3                                        7         Combat
                                                          Large tanker/transport *-a)
                                                                                                                           6
                                                          40%                              1,584         6
DoD budget ($ billions)
                                                          Bombers                                                                                15         Helos
          581               575                                                                                          12
War                                                      51%                                     160    10
funding
                                                         Marine
Base
                                                         72%                                     143
                                                                                                        ’14E            ’15F                   ’20F
          FY14         FY15 President's
                                                                                                                     * CFM is a 50/50 JV between GE and Snecma
                           Budget                              (a-includes aircraft with MTOW
                                                                                                                           CFM ~2,300 ‘13, ~2,400 ‘15, ~2,600 ‘20
                                                                                  >150,000 lbs
                                                                                                                                 Source: Flight Global, GE analysis


                                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit                GE Aviation                                  41
Upgrades to fleet improvement
Program                Opportunity                                              Value prop

Black Hawk/Apache
                        Total engines
T700-701D                                                                      •5% more power
                                                  6,500                        •2-3X core life
                                                                  $2B+         • Army funded dev.
                                                                   Rev

KC-135
F108 (CFM) C-PUP                                                               •1.5% better fuel burn
                         1,515                                                 •>600 fewer shop visits
                                       $1.5B                                   • Life savings of $2B
                                        Rev

Super Hornet/Growler
F414 EDE                                                                       • More systems power
                                                                               • Life savings up to $5B
                            1,730
                                              $3B                              •20% thrust increase
                                              Rev
                                                                                        CFM is a 50/50 JV between GE and Snecma



                       GE PROPRIETARY INFORMATION | Jefferies Investor Visit        GE Aviation                            42
Helicopters … diversified growth
GE-powered                                       T700 military derivative: CT7 power of choice
international military
(installed engines)

                              40%
       Operating in
       32 countries   4,400                                                    AW189                                              525
                                                      S-92                                                                        Relentless

     3,200                                                   EIS ’04                      EIS ’13                1st flight ’14
      ‘12              ’20F




    AW149                AW101
                                                                                                    GE-powered oil & gas
                                                                                                    helicopters
                                                                                                    (installed engines)
                                                                                                                                     4X
    NH-90             KUH-Surion


                                                                                                                             570
                                                                                                          144
 AH-64 Apache         T-70/Black Hawk
                                                                                                           ‘12               ’20F


                                        GE PROPRIETARY INFORMATION | Jefferies Investor Visit            GE Aviation                  43
Leadership in rotorcraft …
Our newest family member … GE38                                                   Next generation for rotorcraft

                                                                                                                      More power in
                                                                                                                       hot/high conditions

                                                                                                                      Lower fuel
                                                                                                                       consumption

                                                                                                                      Lower operating costs
         Sikorsky CH-53K King Stallion

      “US largest new rotorcraft system … new                                                                                    65%
 technologies … 3X lift capability of aircraft it replaces”                    AATE                       T700
                                                                                                                                 better

                   Aviation Week – May 5th                                     (Advanced Affordable       baseline
                                                                                                                       25%                35%
                                                                               Turbine Engine)                         lower              lower

                                                                               • For Black Hawk and Apache

                           • 57%* more power                                                                                     80%
                                                                                                                                 better
                           • 18%* better SFC                                   FATE                       T55
                                                                               (Future Affordable         baseline
                           • 63%* fewer parts                                  Turbine Engine)
                                                                                                                       35%
                                                                                                                       lower
                                                                                                                                          45%
                                                                                                                                          lower
 GE38
                                                                               • For NextGen rotorcraft
 7,500 shp class
                             *Compared to engine it replaces (T64)                                               Specific Fuel   Power:   Cost
                                                                                                                 Consumption     weight
                                                                                                                    (SFC)
                                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit             GE Aviation                   44
Leadership in combat …
What is next gen combat propulsion?                                  Adaptive cycle game changers
Today …                                                                                                    Enables adv weapons
                                                                                                           Enhanced survivability
High performance                   Fuel efficiency                                                         Increased thrust
                                                                                                           Improved cooling capacity
                          OR
                                                                                                                             Highest
Low-bypass, high thrust        High-bypass, highly efficient                                                             combination of
                                                                                                                          pressure and
                                                                                                                          temperatures
Future … Adaptive Cycle                                                                                                 ever achieved in
High performance          AND      Fuel efficiency                  ADVENT engine                                           industry


                                                                                           ADVENT
                                                                                           (Adaptive Versatile Engine
                                                                                           Technology)

                                                                                                                        Only Engine Mfg.
• 3rd stream fan           • High energy core                                                                              awarded
                                                                                           AETD
• Advanced materials       • Advanced cooling
                                                                                                                           BOTH
                                                                                           (Adaptive Engine
                                                                                           Technology Development)

                                                                                                                           contracts

                                   GE PROPRIETARY INFORMATION | Jefferies Investor Visit                 GE Aviation                   45
Building on technology investments
Commercial engines


                           GEnx                                                     AETD
                                                                                    (Adaptive Engine Technology
                                             LEAP                                   Development)
 Advanced aerodynamics & cooling
 High temperature alloys
                                                            GE9X
 Ceramic Matrix Composites (CMC)
 High efficiency core


Military engines
                                                          ADVENT
                                                                                          Fuel                  30%               10%
                                                                                          burn                 better             more
                                        F136                                 5thGen
                                                                             baseline      25%                 Range              Thrust
                                                                                          lower
 Adaptive cycle & 3rd stream
 High pressure ratio
 Survivability technologies
 Augmentor/exhaust nozzle
                                                                                                     CFM is a 50/50 JV between GE and Snecma

                                GE PROPRIETARY INFORMATION | Jefferies Investor Visit            GE Aviation                             46
Aviation systems & Business and general
aviation




              GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   47
GE Aviation systems solutions
2 global business             Positioning for growth                            Worldwide presence

                                  787:
 Avionics & Digital               $1.0MM/aircraft


    Core Avionics                 A350:
                                  $1.0MM/aircraft
    Digital Systems

                                                                    A380:
                                                          $1.5MM/aircraft          North America
 Integrated Systems                   F-35:                                        United States
                               $1.6-1.8MM/                                         Canada
                                    aircraft                                                       Asia-Pacific
     Electrical power
                                                                                                         China
                                                                                                      Australia
     Mechanical                                                                  Europe              Singapore
                                                                G650:            United Kingdom
                                          C919:       $0.4MM/aircraft            France
     Unison                     $3.0MM/aircraft                                  Poland




                        GE PROPRIETARY INFORMATION | Jefferies Investor Visit     GE Aviation               48
Avionics overview … GE portfolio
 5 product areas …
 Flight Management System (FMS)                                         Computing and networking
  • Flight planning                                                     • Centralized computing hardware
  • Flight optimization, performance                                    • Remote interface network units



Displays                            Vehicle Health &                                        Mission Systems
• Head-down displays                Data Mgmt (VHDM)
                                                                                            • Payload deployment
• Standby instruments               • Aircraft data recording                               • UAV refueling, landing
                                    • Aircraft health monitoring

 Key programs, pursuits

                  KC-46/C-130/P-8           C919                     B777X              B737/A320 upgr.                Typhoon

 FMS                                                                                         
 Computing                                                           
 Displays                                                                                                               
 Opp’ty            $   300M+            $   400M+                $   450M+                  $   700M+              $   140M+

                                    GE PROPRIETARY INFORMATION | Jefferies Investor Visit            GE Aviation                 49
Growth in China
                                                                            Launch platform … COMAC C919
                                                                            … EIS 2017

•     Tier 1 avionics … hardware and software
      development, and integration
•     250 engineers in Shanghai                                            Displays

                                                                                        Core computing
                                                                                                 Engines
China, Asia-Pac … key growth                                                                     Integrated propulsion
    Deliveries next 20 years*     Asia-Pac fleet size*


         20%
         Other   35%               ~3x
                                              13,700
                 Asia-Pac
      23%                                                                                                    Networking
      Europe                    4,700
               22%                                                         Flight Management
            N. America                                                     System                    On-board maintenance
                                2011            2031

                                             * Boeing estimate


                                    GE PROPRIETARY INFORMATION | Jefferies Investor Visit          GE Aviation              50
Integrated systems
 Differentiated solutions for military & civil platforms

  Power                                 Unison                                           Mechanical




• Aircraft power … generation,      •   Thermal management                               • Propellers
  distribution & conversion         •   Tubes & ducts                                    • Aero structures
• Air management systems …          •   Electrical components …                          • Landing gear & actuation
  valves, air starters              •   Ignition, sensors, FADEC power




                                 GE PROPRIETARY INFORMATION | Jefferies Investor Visit         GE Aviation            51
Electric Power … airplane “smart grid”
     Primary power                     Secondary power           Power
      distribution    Generation         distribution          conversion                    Integration labs … US & UK




      Emergency      Environmental            Advanced           Battery
        power           controls              propulsion         systems
                                                                                             … Applying GRC innovations

Where we are competing and winning
•   Primary & distributed power … G650
•   Primary power on … 75% large UAVs
•   Backup power on … 777X
•   Power System on … JSF

                                     GE PROPRIETARY INFORMATION | Jefferies Investor Visit           GE Aviation          52
Business & General Aviation engines
CF34
Turbofan
              Bombardier Challenger 605 Bombardier Challenger 850   Bombardier Challenger 870        Bombardier Challenger 890 Embraer Lineage 1000



CFM56-5B                                              CFM56-7B

              Airbus A319                                                                            Boeing Business Jet


Passport 20

              Bombardier Global 7000    Bombardier Global 8000


GE Honda*
HF120
              HondaJet



M601,
H80
              LET L410                  Thrush 510G                 King Air 90 (Retrofit)




                                                                             *GE Honda Aero Engines LLC is a 50/50 joint venture between GE and Honda Aero Inc.
                                                           CFM, CFM56 and CFM logo are trademarks of CFM International, a 50/50 joint company of Snecma and GE.

                         GE PROPRIETARY INFORMATION | Jefferies Investor Visit                             GE Aviation                                 53
Expanding in growing segments

Turboprops … lowest                  Turboprop platforms
cost, best performance
Light jets … expand GE
Honda franchise                        Thrush Aircraft 510G             AIR-TEC L410 Upgrade         CAIGA TP150

Mid-size jets …
everything but engines
Large cabin … GE                     Technoavia Rysachok             Aircraft Industries L410     Nextant Aerospace G90XT

Passport + Flight                    H-Series aircraft opportunities*
Efficiency Services and                                                            New
Power
Services … synonymous                                                                                    Retrofit
with support

                                                                                     2,100                  500
                                                                                                                   * Next 10 years


                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit            GE Aviation                        54
Expanding in growing segments
Large business jet                                               Light business jet




                  Passport: First                                                          HF120: Certified
                      engine to test                                                          • 12,000+ engine cycles
                      • Engine performance                                                    • 8,400 + engine test hrs.
                        on track


 •   GE at 23%, projected 2022 share 35%                            •     HF120 share grow to 25% by 2022 …
                                                                          growth stimulated by new platforms
 •   Increased international deliveries on
     demand for larger cabin, longer range                          •     Expected $8B market ’13’-’32

                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit             GE Aviation         55

                                  GE Honda is a 50/50 JV between GE and Honda Aero, Inc.
Engineering excellence




              GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   56
Engineering … a global community
  Aviation
  GRC
                                             Czech Republic
                                             ~70 engineers
                            UK
                            ~650 engineers                     Poland
                                                               ~650 engineers
  United States
  ~5650 engineers                   Italy                       Turkey                  China
                                    ~425 engineers              ~250 engineers          ~150 engineers
             Mexico
 ~1100 engineers                                                       India
                                                                       ~690 engineers




Over 9500 engineers around the globe
+ 3000 technologists at 5 Global Research Sites

                      GE PROPRIETARY INFORMATION | Jefferies Investor Visit      GE Aviation             57
Leading in commercial engine technology
                                                                                                            Fuel Burn
                                                                                                          improvement

                                                                             777X (GE9X)

                                                  A320, 737 (CFM LEAP)                                                  20%

                                                787 (GEnx)


                                              A380 (GP7000)
                                                                                                                        10%
                               777 (GE90)



       737 (CFM56)        Regionals (CF34)

       1980                             2000                                          2020
                                                                     LEAP is a trademark of CFM International, a 50/50 JV between Snecma and GE

                     GE PROPRIETARY INFORMATION | Jefferies Investor Visit                     GE Aviation                                 58
Our key new product introductions
Program                              ‘14            ‘15            ‘16              ‘17                ‘18                 ‘19

    GEnx                         In service                                                                         Tech maturation
                        Boeing

                                                                                                                    Production development
    GE Honda                     FAR 25         In service
    HF120               Honda



    Passport        Bombardier
                                 Flight test    Cert           In service


    CFM LEAP                     Flight test    Cert           In service


                                 Engine
                 Airbus/ COMAC                  Flight test    Cert            In service
                        Boeing
                                 test

    Heavy Lift                   Flight test    Flight test    Flight test     In service
    helicopter        Sikorsky


                                 Tech           Drawing        Engine
    GE9X                Boeing   develop        release        test
                                                                               Flight test         Cert                In service


    Advanced                     Tech           Tech           Drawing         Engine
                                                                                                   Flight test         Cert
    Combat                DoD    develop        develop        release         test

    Advanced                     Tech           Tech           Tech            Drawing             Engine
                                                                                                                       Flight Test
    helicopter            DoD
                                 develop        develop        develop         release             test
                                                                         HF120 is a trademark of GE Honda, a 50/50 JV between GE and Honda Aero Company
                                                                              LEAP is a trademarks of CFM International, a 50/50 JV between Snecma and GE



                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit                      GE Aviation                                59
Technology “FastWorks” …
Design Iterations From Your Desk

Design Concept                          Test Prototype                             Turnaround


                 Before
                 Metal Casting
                                                                                         36
                                                                                         WEEKS



                 Now
                 3D Printing
                                                                                           2
                                                                                          WEEKS

                   GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation       60
Technology-dedicated lean labs … accelerating
innovation


                                                      1
             Research




                                                        lab Maturing All Technologies

        Lean
        Labs
Production
                                                 11Individually Focused Labs


                  GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   61
Avio Aero … broad range of capabilities

                                                                  Aeroengine technologies – Avio positioning
                                                             (Qualitative representation of a geared turbofan engine)




                                                                                             High          Low
                        Power                         Accessory         Combustion
           Fan                        Compressor                                           pressure      Pressure
                       Gearbox                         Gearbox           chamber
                                                                                            turbine      Turbine




• Unique design & make capabilities    • Up to 700 kw power range                      • World’s largest LPT experience (GE90)
• Up to 30 MW power range              • GBX integration with oil system               • State of the art turbine efficiency (GEnx)


                                        GE PROPRIETARY INFORMATION | Jefferies Investor Visit           GE Aviation                   62
The global research advantage
       Global Research Center                                                  Aero-Thermal and
       Niskayuna, NY                              3,500                       Mechanical Systems
                                                  research
       India Technology Center                    employees                Chemistry and Chemical
       Bangalore, India                                                         Engineering


       China Technology Center
       Shanghai, China
                                                  50,000                       Diagnostics and
                                                                           Biomedical Technologies
                                                  GE
                                                  technologists
       Global Research Europe
       Munich, Germany
                                                  worldwide                 Electrical Technologies
                                                                                 and Systems


       Brazil Technology Center
       Rio de Janeiro, Brazil
                                                  ~$5 billion                 Manufacturing and
                                                                             Materials Technology
                                                  technology
       Global Software Center
                                                  spend
                                                                             Software Sciences and
       San Ramon, CA                                                               Analytics


                  GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation            63
GE’s Analytics Advantage

                                                     350
SoftWare CoE
                                                                                  Engineers working on
                                                                                  Aviation Analytics




                                                        25                        Customers connected
                                                                                  to full flight data

                                                                                                    ~10M
                                                       Full flight data growth
                                                       (# of flights)
                                                                                    3.4M


                                                                   15k
                                                                   2013             2014            2015
                                                       Data
               Aviation                               Volume
                                                     (Tera Bytes)     2             340             1,500
                          GE PROPRIETARY INFORMATION | Jefferies Investor Visit       GE Aviation          64
Minds & Machines at GE Aviation
Asset productivity….example

Issue: Accelerated wear in regions
with high air particulates




      Approach: Applied analytics to
      detect engines at risk of early removal




                                                                      Distress
                                                                       metric
      (millions of data points used…every engine in the fleet,
      every flight)

                                                                                                                  Flight Cycles

                Value: Prevent high cost events and
                minimize customer maintenance burden


                   Time on Wing                Maintenance,                         Reliability                 Disruptions
                                             Repair & Overhaul
                                     GE PROPRIETARY INFORMATION | Jefferies Investor Visit        GE Aviation                 65
Minds & Machines at GE Aviation
where physics meets analytics
Anomaly Detection                                                                                                                           Descriptive Analytics
                                                                                                                                  Operator A
                                                                                                                                  Derate, dust
  Temperature




                                                                                                                                                          Operator B




                                                                                                                     Exposure
    Engine




                                                                                                                                                          No derate, dust




                                         Departures
                                                                                                                                      Part Temperature
      “Temperature has shifted
    in particulate environments”                                     Engine data +                                                  “A subset of the fleet is
                                                                 environment + engine                                           susceptible to accelerated wear”
                                                                       physics =
Predictive Analytics                                                                                                                       Prescriptive Analytics
                                                                     Customer Value
                                  Takeoff
                                              Climb
                             Corrosion                                                                               Above limit … on watch




                                                                                                   Distress Metric
                                                      Cruise
     Exhaust gas temp (C)




                             Threshold



                                                                                                                                                 Below limit … continue service

                                                                                                                                                                Departures
                                                                                                “Condition will cause engine removal in
                            “We have isolated the                                               xx flights. Recommended operation to
                            operational condition”                                              extend time on wing is…..”
                                                       GE PROPRIETARY INFORMATION | Jefferies Investor Visit                             GE Aviation                   66
Minds & Machines at GE Aviation
Flight Efficiency Services…improving how airlines fly their planes
                                                                                                  Green = Left
                                                                                                  Red = Right

                + Fleet Synchronization
                “Let’s implement full
                ops efficiency”


              + Navigation Services
             “Partner with me to
             increase efficiency”                              Average Cost Increase = 2300 kg / hold


          + Fuel and Carbon
         “Let’s find and implement
          fuel saving programs”

     + Austin Digital
      “Let’s measure and track
      safety & fuel procedures”
                                                              Average Cost Increase = 150 kg / flight
                            GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation              67
Supply chain




               GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   68
Supply Chain … a global community
  Services
  Engines New Make
  Systems New Make




                                                             79 facilities
                                                             21 countries
                                                             31,400 employees
                                                             5,000 suppliers
                                                             9 joint ventures
                     GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   69
Supply Chain execution
Capacity & Capability
(commercial & military units)                             • Restructure high cost sites
     4,000            4,100       4,150
                                                          • Increase volume at low cost sites
                                 70%
                                              NPI
                                  NPI
                                              Comm’l
                                              Military
                                                          • Expand footprint                 … new plants
      '14E             '15F        '20F

Drive Cost out                                            • Accelerate productivity                     …
($ in millions)                    ++
                         +                                   material & conversion
       $221

                                                          • Vertical integration … make vs. buy

    '11-'13 Avg         '14     '15-'17 Avg
                                                          • Dual source for cost & risk reduction

                                  GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation       70
Vertical integration activity
               2011 – 2013 … 16 deals
                                                                  Technology differentiation &
                                                                  cost control
Venture
 Joint




                                                FADEC JV
                                                                     • Ceramic-matrix composites
                                                                     • Enabling technologies
 Acquisition




                                                                     • FADEC JV
                                                                     • Fuel nozzles JV
                                                                     • Composites
                                    10+
 Disposals




               Low technology
               Non-core                                              • Advanced castings
                                    dispositions


Reenergizing make vs. buy

                                GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   71
Fuel nozzles … partnering for innovation


                           GEnx                          LEAP
            Tip      20+ components                       1 component
            Braze/weld 27 joints/11                       6 joints/8
            Cost                                         25% less
            Weight                                       30% lighter                                                                       Additive tip
                                                                                                                                           (Combined fuel
                                                                                                                                           and air circuits)



       Supplier                        Developed                                                         GRC
       Supplier                          Designed                                                        GE Aviation
       Supplier              Intellectual property                                                       GE
       Supplier                    Manufacturing                                                         Joint venture
       Supplier                           Services                                                       Joint venture

                                       Formation of Advanced Atomization Technologies as a Joint Venture between GE and Parker is subject to regulatory approval


                     GE PROPRIETARY INFORMATION | Jefferies Investor Visit                                 GE Aviation                                  72
Unique Additive Manufacturing expertise
    Italy – Cameri (Novara)
                         • Established in 2004            Key technologies
                         • 10 years of R&D/prod.
                           experience
                         • New plant in 2013 (12,000 sqft
                           + growth potential of 2x)
                         • Technical Lab (chemical,
                           Laser Scan)
                         • Gas Atomization for powder
                           production (Q1 2015)           DMLS (Direct Metal Laser sintering) EBM (Electron Beam Melt.)
Products




                                                 Housing                                 Air duct                 Liner




     TiAl Rotor blades                           Impeller                Injection system              Deoiler

                                 GE PROPRIETARY INFORMATION | Jefferies Investor Visit              GE Aviation           73
Building new technology capabilities
Ceramic-matrix composites
Material …                           Product …                                                         Production …

                                                                Lean labs



                                            Newark, DE                                        Asheville, NC



Additive manufacturing
Application science …                      Scale …                                                    Production …

                                                                                             Clyde, NY




                             World’s highest capacity manufacturer                                       Auburn, AL
                                                                     * Advanced Atomization Technologies (Parker JV) pending regulatory approval

                     GE PROPRIETARY INFORMATION | Jefferies Investor Visit                     GE Aviation                                 74
Maintenance, repair & overhaul … footprint for
the future
     OEM                 Services backlog                                                                  Network
                                                                 ++
    GE Celma                                   $96
                              $42
                                                                                                             CFM56
                              '10             1Q'14              '20F
   GE Strother



   GE Malaysia
                         Engines under CSA                                                                      CF6
                                                               15,000                                                             EGAT
                                             11,300
                             9,000
                                                                                                               GE90
    GE Wales

                              '10             1Q'14              '20F                                      CF34/CT7

  GE Caledonian

                         Network imperatives
                                                                                                               GEnx
           St. Quentin
                         •   Grow low cost sites
           Brussels
           Casablanca
           Queretaro
                         •   Expand partner capability and
                             capacity in each region
                                                                                CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50
                                                                                            joint company between Snecma and General Electric Company

                             GE PROPRIETARY INFORMATION | Jefferies Investor Visit                    GE Aviation                                 75
Wrap up




          GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   76
In summary
 Great GE business that invests & delivers

 Unprecedented installed base … and
  growing
 Investments in all segments securing
  product positions
 Unprecedented services backlog … and
  growing
 Minds & machines enhancing customer
  productivity
 A commitment to technology leadership

 Culture of simple, competitive cost
  structure

                      GE PROPRIETARY INFORMATION | Jefferies Investor Visit   GE Aviation   77
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