Your SlideShare is downloading. ×
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

GE-Credit Suisse Conference: Rebuilding the Economy: Brick by Brick, Bridge by Bridge

370

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
370
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mark Dudzinski GE Energy General Manager, Global Marketing U.S. Stimulus Package Program 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 often contain words such as “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest and exchange rates, commodity and equity prices and the value of financial assets: continued volatility and further deterioration of the capital markets; the commercial and consumer credit environment; the impact of regulation and regulatory, investigative and legal actions; strategic actions, including acquisitions and dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; 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.“ “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.” “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.” GE’s portfolio • 4 businesses operating in more than 100 countries … 125+ years • ~300,000 employees worldwide • 2008 revenue $183B Energy Technology GE NBC Infrastructure Infrastructure Capital Universal • Power & Water • Aviation • Aviation Financial Services • Cable • Energy Services • Enterprise Solutions • Commercial Finance • Film • Oil & Gas • Healthcare • Energy Financial Services • International • Transportation • GE Money • Network • Treasury • Sports & Olympics 2 1/ GE /
  • 2. GE Energy Infrastructure ($ in billions) AAGR $38.6 24% $30.7 $6.1 31% $25.2 Revenue $4.8 Growth driven by: $3.5 • Diverse product offerings • Global demand Operation • Strong equipment sales Profit • Investing in technology ‘06 ‘07 ‘08 Business is growing globally 3 Power & Water ‘08 revenue $23 billion Power Water • Heavy duty gas turbines • Jenbacher gas engines • Process chemicals • Aeroderivative gas turbines • Wind turbines • Water chemicals • Generators • Photovoltaic solar • Equipment & membranes • Steam turbines • Gasification • Residential • Combined cycle systems • Nuclear • Mobile water • Structured projects 4 2/ GE /
  • 3. Energy Services ‘08 revenue $10.3 billion Outage Optimization Services Contractual T&D Environmental & Control • Inspection & • Turbines • Smart Grid • Emissions • Asset condition repair • Power island • Grid reduction & monitoring • Uprates decongestion control (NOx, • Control solutions • Balance of Hg, PM) • Life extension plant • Metering • Optimization & solutions • Thermal diagnostic • Multi-vendor • Emissions testing performance software services • Automation services • O&M systems • Comprehensive • T&D projects plant services 5 American Recovery & Reinvestment Act of 2009 10.8 46.2 2.7 7.2 3.3 12.7 Plus $30-60B in 5.0 additional customer 4.5 spend Smart BPA Energy Fossil Broad America Bonds/ Energy Grid WAPA Efficiency Energy Band Competes Guarantees Segment ~$100 billion energy related spend 6 3/ GE /
  • 4. U.S. Stimulus package Funding for new and existing programs 1 Production tax credit or 30% investment tax credit or grants (wind) • Developer / owner gets the benefit 2 Fund existing programs • More “shovel ready” 3 T&D – funding goes to federal agencies … example Stimulus DOE GE Customer Funding 1st proposed rules ... Customer + GE GE 2nd solicitation 7 Smart Grid The marriage of IT with our electrical infrastructure to support our 21st Century energy needs • Resource efficiency … supports high penetration of wind, distributed solar and Combined Heat & Power (CHP) • Energy efficiency … advanced controls to reduce transmission & distribution losses • Consumer efficiency … enables consumers to manage energy usage and costs • Asset efficiency … monitoring to fully utilize and extend life of existing assets • Operating efficiency … remote monitoring & control to improve reliability and resource utilization 8 4/ GE /
  • 5. U.S. stimulus impact Approved T&D spending measures T&D smart grid revenue Measure Incremental revenue orders Modernization of the nation’s electricity grid Electricity transmission systems investment Extend broadband internet $4-5B Loan guarantees for renewable energy systems and electric transmission projects Funding Controlling agency $4.5 B DOE … Smart Grid $6.5 B WAPA & BPA $5.6 B NTIA and/or USDA $8.0 B DOE … Guarantees '10E '12E Estimates: 60–75% spend over 3-5 years 9 GE advocates Smart Grid solutions Equipment System GE benefits integration • Deliver solutions … Smart Grid not just product applications • Renewable generation Automation & control GE is • Energy efficiency very well Distribution • Demand management positioned equipment Asset optimization Metering • PHEV’s friendly infrastructure 10 5/ GE /
  • 6. Stimulus: renewables provisions & impact Key provisions Annual U.S. Wind installs • 3 yr. extension of PTC (GWs) • Option to convert PTC to 30% ITC 11-14 Without stimulus • Option to receive Treasury grant for 30% ITC With stimulus 9-12 Industry implications 7-9 8 • Longest ever, 46 mo. PTC runway 5-7 • Treasury grant option delivers tax credit monetization certainty • Stable bridge to Federal RES … 4 4 potentially 2H09 3 2 • Financing, power demand & large industry backlog delaying new turbine orders ‘08 ‘09 ‘10 ‘11 ‘12 Source: GE + AWEA analysis U.S. Stimulus should provide $5-10B incremental revenue from 2010-2012 11 Other areas where we play 12 6/ GE /
  • 7. Utility-scale PV Complete solar system kit Racking system Thin film PV GE inverter Cabling Monitoring & modules security “GE offers a 1.5MW solar power plant kit, designed for ease of installation, optimized for performance, and delivered with excellent GE execution and reputation” System specs 1.5MW “Plug & play” advantages Area 10-14 acres • GE reliability and execution Production 2,100 MWh/yr • Grid friendly and GE controls System life >20yrs • Simplified and scalable • Cost competitive 13 Renewable generation Conditioned GE’s Jenbacher Gasifier syngas Gas engine Fuel storage bin Analysis for 8 MW power plant Sensitivity: Capex vs. simple payback Simple payback (yrs) 16 14 1.0 Capex 12 0.75 Capex 10 8 6 $(10.00) $- $10.00 $20.00 $30.00 Biomass cost ($ dry ton) 14 7/ GE /
  • 8. Waste Water generation • Generate electricity from waste gas • GE’s Jenbacher gas engines … global leader • Projects in process 15 Energy efficiency Combined Heat & Power: High efficiency AC Motors The simultaneous production of electricity and heat from a single fuel source…i.e. natural gas, biomass, biogas, coal, waste heat, or oil. Example • Pays for itself in 1½ years • Annual electrical savings >$1,000 • Reduces carbon dioxide emissions by 8.4 tons every year • Equivalent of 1.5 cars off the road • Equivalent of 2.1 acres of trees planted 16 8/ GE /
  • 9. U.S. Stimulus and gasification/IGCC Appropriations Tax credits $3.4 billion for DOE coal FE programs: • 30% ITC includes CCS • $1B Fossil Energy research programs Energy conservation bonds • $800MM increase for Clean Coal • Raises tax credit to $3.2B bonds – now • $1.52B new industrial CCS demos includes CCS R&D & Commercial • $80MM CCS site characterization, projects R&D, training March Notices of Intent May Solicitations 30 day bid response 17 GE Energy … broad footprint Well positioned to realize Stimulus Benefit Timing and Impact: • Treasury related – need grant rules – helps 2009 – full potential 2011 • Existing programs … fast start for in process programs – GE upside … new programs with large deployments • Smart Grid … big upside … larger GE benefit if focus is jobs with grid performance $100B+ industry impact 18 9/ GE /
  • 10. GE Energy U.S. Stimulus Package Program Mark Dudzinski General Manager, Global Marketing 10 / GE /

×