Goldman Sachs
                                                                                                            ...
The Challenge
      Global Energy Related Emissions (Gt CO2/ yr)
60


50
                                                 ...
Business Strategy

Driving Innovation and Growth of

Profitable Environmental Solutions


                                ...
Reducing our own footprint
'04         GHG Emissions (MM MT / yr)
'07                                                     ...
Innovative technologies…for tomorrow
                                                    $1.5B/Yr
Carbon Capture       14%...
Locomotives
  Evolution Platform           Evolution ES44C4                          Hybrid Evolution
.
  3,000+ Delivered...
2.5MW… The next evolution
Product evolution
• 2.5 MW program initiation in 2003

• First 2.5 MW unit installed in 2004

• ...
GEnx aircraft engine … entering
service in 2010
Pound for pound, GE’s most
fuel efficient and lowest
emissions jet engine
...
GE Energy Financial Services – VC / Growth Portfolio*
Energy Efficiency
& Smart Grid

Renewables


Energy Storage


Oil & ...
Please visit ecomagination.com




                                 19 / Title or job number / February 2009
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GE- Goldman Sachs Fourth Annual Alternative Energy Conference

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GE- Goldman Sachs Fourth Annual Alternative Energy Conference

  1. 1. Goldman Sachs Steve Fludder May 21, 2009 quot;Results are preliminary and unaudited. 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: the severity and duration of 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 U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels and commercial paper exposure 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 soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current 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; 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.” “In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.” Agenda • Why ecomagination? • What is it? • Our Progress • Driving Innovation 2 / / February 2009
  2. 2. The Challenge Global Energy Related Emissions (Gt CO2/ yr) 60 50 CO2 emissions ↓ 50% 40 2005 Decoupling needed 30 20 Technology is key 10 0 1990 2000 2010 2020 2030 2040 2050 IEA Reference Scenario 50% reduction path 3 / / February 2009 The Opportunity Global Energy Related Emissions (Gt CO2/ yr) 60 Carbon Capture 14% & Sequestration1 50 9% Nuclear1 Renewables 40 23% & Biofuels1 2005 d 30 Energy 54% Efficiency1 20 10 1. Source: International Energy Agency – World Energy Outlook 2008 0 1990 2000 2010 2020 2030 2040 2050 IEA Reference Scenario 50% reduction path 4 / / February 2009
  3. 3. Business Strategy Driving Innovation and Growth of Profitable Environmental Solutions 5 / / February 2009 1. Grow revenues to $25B by 2010 2. Double R&D to $1.5B 3. Reduce GHG 1% absolute by 2012 4. Reduce water 20% absolute 5. Inform & Engage public… ongoing Transparency & Leadership 6 / / February 2009
  4. 4. Reducing our own footprint '04 GHG Emissions (MM MT / yr) '07 • > $100 MM savings 6.5 6.75 7 7.25 7.5 7.75 • 5,000+ projects '04 GHG Intensity (MT / $MM Rev) '07 Lighting @ 46 plants 20 30 40 50 60 70 '04 Energy Intensity (MM Btu / $MM Rev) '07 250 300 350 400 450 500 550 '06 Fresh Water Use (Billion Gallons) ↓ $6.5MM, 59k tons CO2 '07 7.5 8 8.5 9 9.5 10 ’12 Commitment Innovative technologies…now Revenues ($B) 25 Energy Infrastructure: $10.5B 20% CAGR 17 14 12 Technology Infrastructure: $5.1B 10 … Consumer & Industrial: $1.9B '05 '06 '07 '08 ’10 goal • 80 certified products Capital: $9MM • Across the company 8 / / February 2009
  5. 5. Innovative technologies…for tomorrow $1.5B/Yr Carbon Capture 14% & Sequestration 14% IGCC Carbon Capture Nuclear 9% Thin Film Solar 23% 23% Renewables & Biofuels Advanced Wind Desalination d Waste Energy Heat OLEDs Storage Energy 54% Efficiency 54% Recovery GEnx Hybrid evo Carbon Reduction Scenario1 1. Source: International Energy Agency – World Energy Outlook 2008 9 / / February 2009 Energy Smart Miami • $200M smart grid initiative • Proposal for economic stimulus funds • Estimate for 800-1,000 “green collar” jobs • Public/private alliance GE City of Miami FPL Cisco Silver Spring Networks • ~1M Customers involved Smart Meters Demand Management Distribution Automation Substation Intelligence Distributed Generation Enterprise Systems “It’s time for action. With projects like Energy Smart Miami, we can stimulate the economy today and build a brighter, cleaner tomorrow. It’s truly a win-win for Miami and for America.” Carol Browner Assistant to the President for Energy and Climate Change
  6. 6. Locomotives Evolution Platform Evolution ES44C4 Hybrid Evolution . 3,000+ Delivered Innovation: 2009 Innovation: 2010+ Up to 40% less NOx Up to 70% less NOx less NOx 3% fuel efficiency gain Up to 17% fuel savings fuel efficiency 12 cylinders / 4,400hp New AC Motor Technology Batteries = 2,000hp equivalent 11 / / February 2009 Battery Technology Manufacturing • $100M battery technology investment to accelerate technology deployment • Estimate for 350 manufacturing jobs + supply chain • High Energy Sodium Batteries Hybrid Locomotive - 2010 Mining – Off highway vehicles Utilities – storage & smart grid leveling • Compliments GE investiment in A123 Lithium ion technology Plug-in electric passenger cars “Hybrid locomotives, and the battery technology on bard, could be an important part of how we ship goods by rail in the future….and further enhance rails reputation…” Matthew K. Rose President & CEO, Burlington Northern Santa Fee Corporation
  7. 7. 2.5MW… The next evolution Product evolution • 2.5 MW program initiation in 2003 • First 2.5 MW unit installed in 2004 • One million operating hours on 2.5/2.3 MW fleet • First 2.5xl technology demonstrator installed July 2006 • First full production 2.5xl unit installed October 2007 • 2.5xl serial production commenced August 2008 13 / / February 2009 2.5MW … The next industry workhorse Utilizing GE Technology Creating the next industry workhorse Pitch Control Gearbox & Drivetrain Availability & loads Reliability & 100 m efficiency 85 m GE 2.5 MW ‘04 ‘07 Rotor Size (m) 88 100 Reliability (%) 90 97 +7 Pts Power Electronics Cap Fact. (%) 39 47 +8 Pts Blades Increasing Grid Operability wind capture 50/60hz Customer Value _ ($MM/GW) $160MM 100m class II/III Reliability Logistics differentiation Fleet size ~200MW ~1GW (’10) 14 / / February 2009
  8. 8. GEnx aircraft engine … entering service in 2010 Pound for pound, GE’s most fuel efficient and lowest emissions jet engine Boeing 787 vs 767: • 30% quieter* • 15% more fuel efficient* and 15% lower CO2* • 3x NOx margin to regulations • 35% longer time on wing* *compared to GE engine it replaces 15 / / February 2009 LEDs … Transforming Lighting Professional Systems Replacement Lamps Features Features • > 40% less energy • Up to 75% less energy • 10+ yr service life • 20,000 hr life • RoHS compliant, no Hg • RoHs compliant, no Hg Parking Lot & PAR20 / R63 Roadway Features Features • Up to 80% less energy > 80% less energy • 50,000 hr service life • 25,000 hr life • RoHS compliant, no Hg • RoHs compliant, no Hg Cove Innovation A-line 16 / / February 2009
  9. 9. GE Energy Financial Services – VC / Growth Portfolio* Energy Efficiency & Smart Grid Renewables Energy Storage Oil & Gas Transportation *Excludes 1 undisclosed Proof of Pilot Early Growth investment Concept Stage Sales Stage Development Stage 17 / / February 2009 Southwest Windpower •World’s largest producer of small wind generators •130,000 units •Compact, all-inclusive wind generator (controls and inverter built in) •Designed to provide cleaner electricity at low wind levels •Designed for long life, with five year limited warranty •Skystream product rated at 2.4 kW Applications Market Projections for Small Wind Off-Grid Applications • Rural villages, remote homes & cabins 83% CAGR $1,200 • Telecom towers & utility poles $1,000 Upside Case • Island electrification $800 Base Case ($MM) • Sailboats $600 • Water pumping 40% CAGR $400 Grid-Tie Applications $200 • Utility-connected homes $0 • Commercial & retail 2007 2008 2009 2010 2011 2012 • Street / parking lot light retrofits • Corporate / commercial GHG reduction Source: AWEA Small Wind Study 2007, PV Solar Growth Reports, small wind historical sales data 18 / / February 2009
  10. 10. Please visit ecomagination.com 19 / Title or job number / February 2009

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