Ge Webcast Presentation 05122014 2

GE Aviation Jefferies Investor Visit May 12th 2014 Imagination at work.

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

Business overview


GE Aviation

3

“I find out what the world needs, then I proceed to invent it.” – Thomas Edison


GE Aviation

4

GE Aviation executive team David L. Joyce President & CEO Commercial Engines W.A. Fitzgerald Vice President and General Manager

Services

K.G. McAllister

Finance

Aviation Systems and Digital Engineering and Technology J.W. Daily

Sales & Marketing C. A. Chahrour

Vice President

Vice President and General Manager

Vice President and Chief Financial Officer

Supply Chain

Marketing

Human Resources

L.C. Rouaud

E.W. Marshall

Chief Information Officer

C.B. Athans



BGA & Integrated Systems B.D. Mottier

Assembly, Test & Overhaul

CMCs Program

S.M. Wright

Chief Marketing Officer

A.J. Aiello

S.M. Correa

Vice President

Vice President

Services Engineering

Legal & Business Development


J.M. Rosario

M.R. McAlevey

Vice President

Vice President

Avionics & Digital Systems

Engineering

Business Development


Military Systems J. M. Lydon-Rodgers

M. Ehteshami

T. Kantor

General Manager

P. Prowitt

Attending


W.J. Godsman

Avio Aero

Technology & Sciences and Chief Engineer G.D. Mercer

Communications & GE Advantage

R. Procacci Senior Executive and Avio Chief Executive Officer

Vice President


Global Government Relations Executive Director

A.C. Caslavka Vice President

Vice President

General Manager

J.R. Regg

Senior Executive

Effective: May 2, 2014

GE Aviation

5

GE Aviation portfolio … $22B Commercial engines

$6.8

–2)

–1)

Commercial engine services $7.9 –2)

BGA and Integrated Systems $1.5

Avionics and Digital Solutions $0.8

 General aviation engines  Power, mechanical, electronics

 Avionics  Digital Services

A leading provider of jet engines, services and systems GE PROPRIETARY INFORMATION | Jefferies Investor Visit

Military engines and services $4.1

$0.8

 Power Transmissions  Turbo machinery -1) Based on 2013 revenue -2) includes GE’s share revenue from 50-50 CFM and EA joint ventures

GE Aviation

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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 Aviation

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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 Aviation

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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 Aviation

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Global revenues

Total U.S. Revenues -1 $9.2B

Total Intl revenues $12.8B

42%

58%

Other 2% Lat . America, Canada MENAT 11% 22%

Pacific Basin 35%

Europe 30%

-1) 2013


GE Aviation

revenues 10

Global backlog U.S. backlog $31B -1

Other 3% Lat . America, Canada 10%

25% Intl backlog $95B

75%

MENAT 34% Pacific Basin 41% Europe 13%

-1) 2013


GE Aviation

backlog 11

GE Aviation facilities around the world Europe

North America

Czech Republic

Canada Mexico U.S.A.

South America Brazil

  

France

Asia

Germany

Australia

Hungary

China

Poland

India

Romania

Japan

Turkey

Korea

United Kingdom

Malaysia

Italy

Singapore Taiwan

44,000 employees 79 manufacturing sites 11 Engineering centers GE PROPRIETARY INFORMATION | Jefferies Investor Visit

Thailand

GE Aviation

12

A great GE business ($ in billions)

$21.9 CAGR 8%

$20.0 Revenue

Op profit

Strategic imperatives

$18.9

• Grow installed base and services $3.5

$3.7

$4.3

'11

'12

'13

R&D

$1.5B

$1.6B

$1.8B

Deliveries

2,918

3,296

3,513

Installed Base

56,000

57,000

58,000

• Lead in next-generation products • Position supply chain for product volume growth • Build out digital services for customer productivity

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 Aviation

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Cost efficiency ($ in millions)

Product cost-out $180

Productivity

Simplification $200

$210

• Delivering supply chain productivity

2011

2012

2013

2.0%

2.5%

2.5%

− Global footprint − Lean, deflation, teaming

SG&A cost 1,490

1,465

-1)

1,410

• P&L delayering and consolidation − Disposition of 10+ sites since 2011

% revenue

2011

2012

2013

8%

7%

7%

− Global shared services

1) Excludes Avio acquisition SG&A


GE Aviation

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Commercial engines


GE Aviation

15

Commercial power for today … and tomorrow Regionals CF34® Passport CT7

Bombardier CRJ200/700/900

EMBRAER 170/175/190/195

Saab 340

ACAC ARJ21

Global 7000/8000

Boeing 737

Airbus A320

Airbus A320neo

Boeing 737 MAX

Comac C919

Boeing 767

Airbus A300/310/330

Boeing 787

Airbus A340-200/-300

Boeing 747-200/-300/-400 Boeing 747-8

Airbus A380

Boeing 777

Boeing 777X

Single Aisle CFM56* LEAP*

Twin Aisle CF6 GEnx

Jumbo Twin Aisle

CFM56, CF6/GEnx GP7200**, GE90, GE9X

*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 Aviation

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Commercial Equipment Growth Environment

Production volume

In-service fleet

# of GE and JV engines (-1

# of engines ‘000

Passenger demand

44

(IATA, RPK % YoY)

5.3

5.2

5.8

2012

2013

2014F

2,600

3,000

3,300

36

33

26 20

18

Load factors (%)

79

80+

80+

2012

2013

2014F

Jet fuel ($/gal)

'13

Airline profits $Billions (IATA)

310

298

293

2012

2013

2014F

Source: IATA and GE analysis

'15F

'20F

7.4 2012

12.9

2013

… airlines feeling good GE PROPRIETARY INFORMATION | Jefferies Investor Visit

15

16

’13

’15F

18

’20F

18.7

2014F CFM is a 50/50 JV between GE and Snecma EA is a 50/50 JV between GE and Pratt & Whitney LEAP is a trademark of CFM International -1) Production volume approx. 34% GE, 62% CFM, 4% EA

GE Aviation

17

Commercial orders and fleets Europe

North America

30%

50%

30%

14%

In service

Backlog

51% 20%

47% 11%

In service

Backlog

China Orders ($B)

Backlog $118

$22 Svs

Latin America

45%

48%

20%

5%

In service

Backlog

CEO (-1

61% 8%

46% 22%

In service

Backlog

96

9

Asia

13

22

2013

2013

Middle East

21% 33%

24% 21%

7%

6%

In service

Backlog


38% 21% 0.4%

36% 8% 0%

In service

Backlog

CFM is a 50/50 JV between GE and Snecma EA is a 50/50 JV between GE and Pratt & Whitney -1) CEO orders $6.2 GE, $6.3 CFM, $0.1 EA CEO backlog $11.4 GE, $9.6 CFM, $0.7 EA

GE Aviation

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Growth ahead of demand in all regions (Aircraft fleet in service)

North America

Europe

China

Traffic growth ~ 3%

Traffic Growth ~ 3.5%


Our growth 11%

Our growth 17%

Our growth 22%

In Service Fleet

‘12

~3,900

’15F

~4,350

In Service Fleet

‘12

~3,800

‘15F

~4,500

In Service Fleet

‘12

~1,500

‘15F

~1,800

Latin America

Middle East

Traffic growth ~ 5%



Our growth 30%

Our growth 32%

Our growth 30%

In Service Fleet

‘12

~800

‘15F

~1,050

In Service Fleet

‘12

~600

‘15F

~800

Asia

In Service Fleet

‘12

~1,750

‘15F

~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 Aviation

19

Commercial services growth Environment

Departures

Shop visits

# departures (millions)

5,500

Passengers (IATA, RPK % YoY)

40

5.3

%

2012

5.2

%

2013

5.8

%

2014E

2012

25

2,100

0.9

%

2013

0.2

%

2014E

10 5

‘00

‘05

‘10

‘15F

Source: IATA & GE analysis

21 2013

22 2014E

2,000

2,000

’13

’15F

2 of 3 daily flights

$96B

powered by GE or GE JV’s

Services backlog

GE & JV-powered flights (MM)

2012

2,300

2,300

0

‘95

Departures

20

3,000

15

Avg. cycles/ day, % YoY

-1

100

30

200

20

Utilization %

4,100

35

4,400

’20F

CFM is a 50/50 JV between GE and Snecma EA is a 50/50 JV between GE and Pratt & Whitney


GE Aviation

20

Commercial product positioning Today’s airline service Regional/ Business

Narrowbody

Today’s investment

Installed base (2015F)

9,600

H80

HF120

20,000 LEAP-1A

Widebody

GE Passport

6,600

LEAP-1B

GEnx-1B

GEnx-2B

LEAP-1C

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 Aviation

21

Powering the world’s regional fleet CF34 engines in service Bombardier CRJ200/700/900/1000

5,000

5,100

'15F

'20F

4,600 Embraer 170/175/190/195

COMAC ARJ21

156

operators in 67 countries

73 MILLION

'13

CF34 shop visit forecast 1,100 1,000

1,000

'13

'15F

flight hours


GE Aviation

'20F

22

Preferred power for narrowbody CFM56 …

LEAP … • 26,000 engines delivered

630

• 30+ years in service • 34,000+ departures per day

MILLION flight hours

Fleet in service 20,300 18,800

• 2016 service entry • Selected by Airbus, Boeing, COMAC • 6,300 orders and commits • 9,000 a/c opportunity

15

%

L O W E R

’14E

fuel consumption *

’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 Aviation

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Superior fuel burn … today and tomorrow CF6 …

GEnx …

43

• Best-selling widebody engine ever … 7,450 delivered

YEARS in service

NEW ENGINE

deliveries beyond

• 397 million hours flown

• ~750 shop visits in ‘14 • 1,600 a/c in operation

2020

• Fastestselling GE widebody engine

• 1,835,000 hours flown • 1,600 engines ordered Engines in service 2,100


~

W I N R AT E

630 '14E

62

%

B oeing 787 Airbus A380

'20F

Claims based on GE estimates GEnx win rate does not include undecided engine campaigns

GE Aviation

24

Technology leadership in big twins GE90 …

GE9X … • 600 aircraft

• Service entry end of decade

on order

41

• Sole source

• 1,700

engines in service

• With 65 operators

MILLION flight hours

Fleet in service 2,600

on 777X

• 3,000 a/c

opportunity

Most advanced engine GE’s ever designed

1,700

5

% BETTER

fuel efficiency

vs. ANY engine

’14E

’20F

I N

C L A S S Claims based on GE estimates


GE Aviation

25

Building on technology investment 2011

2015-2016

2020

Scale and design for higher cycle utilization

GEnx

Scale & design for higher thrust and advanced materials

LEAP & Passport

E X P E R I E N C E Delivering technology with customer confidence

Enabling … • Engineering productivity 10%+ • Manufacturing technology readiness • Supply chain efficiencies

GE9X

60M

6000 E N G I N E S

H O U R S

Commercial launches 7 3

70's

80's

5

5

90's

00's

9 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 Aviation

26

Carbon-fiber composites … only GE GE90-94B

GE90-115B

777-200ER

777-200LR, -300ER, 777F

‘95

‘04

• Wide chord design

• Swept aero

22 blades

22 blades

2020 fan blade

EXPERIENCE

100

+

million flight hours

GEnx

787, 747-8

GE9X

Boeing 777X

‘11 • Improved efficiency

‘20 • Improved materials

18 blades

16 blades

Extending to fan cases • Integrated structure • Saves 700+ lbs per aircraft on 787 Based on GE estimates


GE Aviation

27

Compression technology … driving efficiency through pressure GEnx

LEAP & Passport

787, 747-8

737MAX, A320neo Global 7/8000

2011

23-1 Compressor pressure ratio

2015-2016

22-1

GE9X 777X

2018 Cert

27-1

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 Aviation

28

Combustion technology A 20+ year journey of proven innovation in combustion science, materials, and manufacturing

TAPS III (GE9X) Next-Gen 777

TAPS II (LEAP)

737 MAX, A320 neo

2019 • Higher pressure, new standard in industry

TAPS I (GEnx) 787, 747-8

2015 • Additive fuel circuit

DAC (GE90-94B) 777-200ER, 777F

2008 1995 • Set the industry standard

• Evolution in lean combustion

Leader in NOx technology GE PROPRIETARY INFORMATION | Jefferies Investor Visit

GE Aviation

29

Turbine technology GE9X

Leading edge innovation … delivering best fuel burn

Next-Gen 777

LEAP

737 MAX, A320 neo

GEnX

2019

787, 747-8

• Advancing Ceramicmatrix composites • Advancing metals technology

GE90 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 in a silicon carbide matrix

Combustor

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 Aviation

31

Ceramic-matrix … only GE

2.3

GE9X

M

Revenue service

Hours by 2019

Research 1980

LEAP

Product Development

2000

1

st

GENERATION

GE Power Turbine shroud

2

nd G E N E R A T I O N

GEnx

and

2020

rd G E N E R A T I O N

Aviation HPT nozzles and blades

Aviation HPT shroud

GE Frame 7

3

2016

T700

ADVENT


and

F414

GE Aviation

32

Commercial services


GE Aviation

33

Servicing our customers today and tomorrow GE & JV engines backlog

Service offerings

Production Services (years) ($B)

4

$43

6 2 4

$6

$27

GEnx

6

$13

GP7000

2

$2

CFM/ LEAP CF6

CF34 GE90/ GE9x

$5

Risk Transfer $/hr comprehensive maint coverage Overhaul

Time and material (T&M) overhaul

Material

New, Used, Repaired

TRUEngineTM program Asset Analytics Optimization Diagnostics

33,000

96B

$

Backlog

engine installed fleet

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 Aviation

34

Industry leading product portfolio … today and tomorrow Engine lifecycle revenue

GE90-powered Boeing 777

CF6-80C powered widebodies

CF6-80E powered widebodies

GP7200-powered A380 GE9X-powered Boeing 777X

New engines

Design and Test

CF6-6/50 powered widebodies

Parts and Services

40+ Years CF34 8/10 powered regionals

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

CFM-3 powered narrowbodies

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 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 fleet

Type

1+ SV

0 SV

WB NB RJ TP

Region CFM GE ‘90 '90

‘10 '10

CFM 7B/5B fleet

1+ SV

N.Am L.AM

0 SV

Europe ME/Af Asia

‘13 '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 Aviation

36

Aligned network of global service partners

• More than 8,000 employees in 10 countries

• 400+ services customers worldwide • 55+ years of experience (25+ years CFM) • Network locations worldwide

• 250 field service engineers • 450 dedicated customer support representatives

OEM

Network

GE Celma

CFM56

GE Strother CF6 GE Malaysia

EGAT

GE90 GE Wales

GE Overhaul Shops Snecma Shops Network

CF34/CT7

GE Caledonian

GE Component Repair Cincinnati

McAllen, TX

Terre Haute

Hungary

GEnx

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 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) CFM56

~18,500 1984 EIS

CF6-80C2 ~3,000

Upgrades

Fuel Burn

Time-on-wing

8

8%

2x

8

3%

3x

5

2%

2x

1986 EIS

GE90

~1,550 1995 EIS

CFM is a 50/50 JV between GE and Snecma


GE Aviation

38

Minds + Machines = customer productivity Big data and predictive analytics

Customer outcome

Predictive Analytics

Operations optimization

Advanced detection methods Rapid data forensics + data sciences

Zero unplanned downtime / disruptions Avoid high cost failures

Fleet segmentation Engine and part specific duty cycle Analytic based inspection limits … FAA approved

Reduced maintenance burden Inspections tailored by serial number

Airline operations optimization

Improve airlines flight economics

Flight Efficiency Services Using analytics to identify operational savings

Optimized policies and procedures via data fusion and analytics … fuel savings


GE Aviation

39

Military engines & services


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 61%

14,000 22,600 15,700

2,300

25

64%

3,403

Large tanker/transport *-a)

DoD budget ($ billions)

581

6,211

Combat

40%

War funding

30

575

1,584

4 3 6

Bombers 51%

160

10

26 4 3

Marine

4

Special

3

Transports

7

Combat

6

12

15

Helos

Marine Base

72% FY14

FY15 President's Budget

143

(a-includes aircraft with MTOW >150,000 lbs


’14E

’15F

’20F

* CFM is a 50/50 JV between GE and Snecma CFM ~2,300 ‘13, ~2,400 ‘15, ~2,600 ‘20 Source: Flight Global, GE analysis

GE Aviation

41

Upgrades to fleet improvement Program

Black Hawk/Apache T700-701D

Value prop

Opportunity Total engines

6,500

$2B+ Rev

KC-135 F108 (CFM) C-PUP

1,515

$1.5B Rev

Super Hornet/Growler

•5% more power •2-3X core life • Army funded dev.

•1.5% better fuel burn •>600 fewer shop visits • Life savings of $2B • More systems power

F414 EDE

1,730

• Life savings up to $5B $3B Rev

•20% thrust increase CFM is a 50/50 JV between GE and Snecma


GE Aviation

42

Helicopters … diversified growth GE-powered international military

T700 military derivative: CT7 power of choice

(installed engines)

40% Operating in 32 countries

4,400

EIS ’04

3,200 ‘12

AW149

525 Relentless

AW189

S-92

EIS ’13

1st flight ’14

’20F

GE-powered oil & gas helicopters

AW101

(installed engines) NH-90

4X

KUH-Surion

570 AH-64 Apache

144

T-70/Black Hawk

‘12


GE Aviation

’20F

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 technologies … 3X lift capability of aircraft it replaces” Aviation Week – May 5th

AATE (Advanced Affordable Turbine Engine)

65%

T700 baseline

better

25%

35%

lower

lower

• For Black Hawk and Apache

• 57%* more power • 18%* better SFC • 63%* fewer parts GE38 7,500 shp class

80%

better

FATE (Future Affordable Turbine Engine)

T55 baseline

35%

45%

lower

lower

• For NextGen rotorcraft *Compared to engine it replaces (T64)


Specific Fuel Consumption (SFC) GE Aviation

Power: weight

Cost

44

Leadership in combat … What is next gen combat propulsion?

Adaptive cycle game changers

Today …

 Enables adv weapons  Enhanced survivability

Fuel efficiency

High performance

 Increased thrust  Improved cooling capacity

OR

Highest combination of pressure and temperatures ever achieved in industry

High-bypass, highly efficient

Low-bypass, high thrust

Future … Adaptive Cycle High performance

AND

Fuel efficiency

ADVENT engine

ADVENT

(Adaptive Versatile Engine Technology)

• 3rd stream fan • Advanced materials

• High energy core • Advanced cooling

Only Engine Mfg. awarded

AETD

(Adaptive Engine Technology Development)

BOTH contracts


GE Aviation

45

Building on technology investments Commercial engines

AETD

GEnx  Advanced aerodynamics & cooling  High temperature alloys  Ceramic Matrix Composites (CMC)  High efficiency core

(Adaptive Engine Technology Development)

LEAP GE9X

Military engines ADVENT

F136

5th

Gen baseline

 Adaptive cycle & 3rd stream  High pressure ratio  Survivability technologies  Augmentor/exhaust nozzle

Fuel burn

25% lower

30% better

10% more

Range

Thrust

CFM is a 50/50 JV between GE and Snecma


GE Aviation

46

Aviation systems & Business and general aviation


GE Aviation

47

GE Aviation systems solutions 2 global business Avionics & Digital Core Avionics

Positioning for growth

Worldwide presence

787: $1.0MM/aircraft

A350: $1.0MM/aircraft

Digital Systems

A380: Integrated Systems Electrical power

F-35: $1.6-1.8MM/ aircraft

Mechanical

C919: Unison

$1.5MM/aircraft

G650: $0.4MM/aircraft

$3.0MM/aircraft


North America United States Canada

Europe United Kingdom France Poland

GE Aviation

Asia-Pacific China Australia Singapore

48

Avionics overview … GE portfolio 5 product areas … Flight Management System (FMS)

Computing and networking

• Flight planning • Flight optimization, performance

• Centralized computing hardware • Remote interface network units

Vehicle Health & Data Mgmt (VHDM)

Displays • Head-down displays • Standby instruments

Mission Systems • Payload deployment • UAV refueling, landing

• Aircraft data recording • Aircraft health monitoring

Key programs, pursuits KC-46/C-130/P-8



FMS Computing

Displays Opp’ty

$

300M+

$

C919

B777X

  

 

400M+

$

Typhoon

B737/A320 upgr.

450M+


 $

700M+ GE Aviation



$

140M+ 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 Deliveries next 20 years*

20% Other

23%

35%

Asia-Pac

Europe

22% N. America

Integrated propulsion

Asia-Pac fleet size*

~3x

13,700

4,700 2011

Flight Management System

Networking On-board maintenance

2031 * Boeing estimate


GE Aviation

50

Integrated systems

Differentiated solutions for military & civil platforms Power

• Aircraft power … generation, distribution & conversion • Air management systems … valves, air starters

Unison

• • • •

Thermal management Tubes & ducts Electrical components … Ignition, sensors, FADEC power


Mechanical

• Propellers • Aero structures • Landing gear & actuation

GE Aviation

51

Electric Power … airplane “smart grid” Primary power distribution

Emergency power

Generation

Environmental controls

Secondary power distribution

Advanced propulsion

Power conversion

Battery systems

Integration labs … US & UK

… 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

CFM56-5B

Bombardier Challenger 870

Bombardier Challenger 890 Embraer Lineage 1000

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 Aviation

53

Expanding in growing segments Turboprop platforms

Turboprops … lowest 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

Passport + Flight Efficiency Services and Power

H-Series aircraft opportunities*

Aircraft Industries L410

Nextant Aerospace G90XT

New

Services … synonymous with support

Retrofit 2,100


GE Aviation

500 * Next 10 years

54

Expanding in growing segments Light business jet

Large business jet

 Passport: First

 HF120: Certified

engine to test

• 12,000+ engine cycles

• Engine performance on track

• 8,400 + engine test hrs.

•

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

GE Aviation

55

Engineering excellence


GE Aviation

56

Engineering … a global community Aviation GRC

Czech Republic ~70 engineers

UK

~650 engineers

United States ~5650 engineers

Poland ~650 engineers

Italy

Turkey

~425 engineers

~250 engineers

Mexico

China ~150 engineers

India

~1100 engineers

~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)

20%

A320, 737 (CFM LEAP) 787 (GEnx) A380 (GP7000)

10%

777 (GE90)

737 (CFM56)

1980

Regionals (CF34)

2000

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


GE Aviation

58

Our key new product introductions Program GEnx GE Honda HF120 Passport

‘14

Advanced helicopter

‘18

‘19 Tech maturation Production development

FAR 25

In service

Flight test

Cert

In service

Flight test

Cert

In service

Engine test

Flight test

Cert

In service

Flight test

Flight test

Flight test

In service

Boeing

Tech develop

Drawing release

Engine test

Flight test

Cert

In service

DoD

Tech develop

Tech develop

Drawing release

Engine test

Flight test

Cert

Tech develop

Tech develop

Drawing release

Engine test

Flight Test

DoD

Tech develop

Honda

Bombardier

Boeing

Advanced Combat

‘17

In service

Airbus/ COMAC

GE9X

‘16

Boeing

CFM LEAP

Heavy Lift helicopter

‘15

Sikorsky

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 Aviation

59

Technology “FastWorks” … Design Iterations From Your Desk Design Concept

Test Prototype

Turnaround

36

Before

WEEKS

Metal Casting

2

Now 3D Printing GE PROPRIETARY INFORMATION | Jefferies Investor Visit

WEEKS GE Aviation

60

Technology-dedicated lean labs … accelerating innovation Research

1

lab Maturing All Technologies

Lean Labs Production

11

Individually Focused Labs


GE Aviation

61

Avio Aero … broad range of capabilities Aeroengine technologies – Avio positioning (Qualitative representation of a geared turbofan engine)

Fan

Power Gearbox

• Unique design & make capabilities • Up to 30 MW power range

Compressor

Accessory Gearbox

Combustion chamber

• Up to 700 kw power range • GBX integration with oil system

High pressure turbine

Low Pressure Turbine

• World’s largest LPT experience (GE90) • State of the art turbine efficiency (GEnx)


GE Aviation

62

The global research advantage Global Research Center Niskayuna, NY India Technology Center Bangalore, India China Technology Center Shanghai, China Global Research Europe Munich, Germany Brazil Technology Center Rio de Janeiro, Brazil Global Software Center San Ramon, CA

3,500

research employees

50,000

GE technologists worldwide

~$5 billion technology spend


Aero-Thermal and Mechanical Systems

Chemistry and Chemical Engineering

Diagnostics and Biomedical Technologies

Electrical Technologies and Systems

Manufacturing and Materials Technology

Software Sciences and Analytics GE Aviation

63

GE’s Analytics Advantage

350

SoftWare CoE

25

Engineers working on Aviation Analytics

Customers connected to full flight data

Full flight data growth

~10M

(# of flights)

3.4M

Aviation

Data Volume

15k 2013

2014

2015

2

340

1,500

(Tera Bytes)


GE Aviation

64

Minds & Machines at GE Aviation Asset productivity….example

Issue: Accelerated wear in regions with high air particulates

detect engines at risk of early removal (millions of data points used…every engine in the fleet, every flight)

Distress metric

Approach: Applied analytics to

Flight Cycles

Value: Prevent high cost events and

minimize customer maintenance burden

Time on Wing

Maintenance, Repair & Overhaul

Reliability


Disruptions GE Aviation

65

Minds & Machines at GE Aviation where physics meets analytics

Descriptive Analytics

Anomaly Detection

Departures

“Temperature has shifted in particulate environments” Predictive Analytics Corrosion Threshold

Part Temperature

Engine data + environment + engine physics =

“A subset of the fleet is susceptible to accelerated wear” Prescriptive Analytics

Customer Value

Climb Cruise

Distress Metric

Takeoff Exhaust gas temp (C)

Operator B No derate, dust

Exposure

Engine Temperature

Operator A Derate, dust

Above limit … on watch

Below limit … continue service

Departures

“We have isolated the operational condition”

“Condition will cause engine removal in xx flights. Recommended operation to 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 Aviation

67

Supply chain


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

• Restructure high cost sites

(commercial & military units) 4,000

4,100

4,150

70% NPI

• Increase volume at low cost sites NPI Comm’l Military

'14E

'15F

Drive Cost out

… new plants

'20F

++

($ in millions)

• Expand footprint

+

• Accelerate productivity

…

material & conversion

$221

• Vertical integration … make vs. buy '11-'13 Avg

'14

'15-'17 Avg

• Dual source for cost & risk reduction


GE Aviation

70

Vertical integration activity Joint Venture

2011 – 2013 … 16 deals

Technology differentiation & cost control FADEC JV

• Enabling technologies

Acquisition Disposals

• Ceramic-matrix composites

• FADEC JV • Fuel nozzles JV Low technology Non-core

10+

• Composites • Advanced castings

dispositions

Reenergizing make vs. buy GE PROPRIETARY INFORMATION | Jefferies Investor Visit

GE Aviation

71

Fuel nozzles … partnering for innovation GEnx Tip

20+ components

LEAP 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

Supplier

Manufacturing

Joint venture

Supplier

Services

Joint venture

GE

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


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

TiAl Rotor blades

Impeller

Liner

Air duct

Injection system


Deoiler GE Aviation

73

Building new technology capabilities Ceramic-matrix composites Material …

Product …

Production … Lean labs

Newark, DE

Additive manufacturing Application science …

Asheville, NC

Scale …

Production … Clyde, NY

World’s highest capacity manufacturer

Auburn, AL

* Advanced Atomization Technologies (Parker JV) pending regulatory approval


GE Aviation

74

Maintenance, repair & overhaul … footprint for the future OEM

Services backlog

GE Celma

$42 '10

GE Strother

GE Malaysia

$96 1Q'14

Engines under CSA 9,000

11,300

Network

++

CFM56

'20F

CF6

15,000

EGAT

GE90

GE Wales '10

1Q'14

CF34/CT7

'20F

GE Caledonian

Network imperatives St. Quentin Brussels Casablanca Queretaro

•

Grow low cost sites

•

Expand partner capability and capacity in each region

GEnx

CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company


GE Aviation

75

Wrap up


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

Ge Webcast Presentation 05122014 2

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