GE-Merrill Lynch Cleantech Leaders Conference


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GE-Merrill Lynch Cleantech Leaders Conference

  1. 1. Steve Fludder, VP, ecomagination Cleantech Leaders Conference, NYC March 11, 2009 quot;Results are preliminary and unaudited. This document contains quot;forward-looking statementsquot;- 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 quot;expect,quot; quot;anticipate,quot; quot;intend,quot; quot;plan,quot; believe,quot; quot;seek,quot; quot;see,quot; or quot;will.quot; 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. “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” “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.” The Challenge Our Generation’s Moonshot 60 Energy Related Global Emissions (Gt CO2/ yr) 50 CO2 emissions ↓ 80% 40 30 2005 Decoupling needed 20 Technology is key 10 IEA Reference Scenario 50% reduction path 0 1990 2000 2010 2020 2030 2040 2050 2 / March 2009
  2. 2. Business Strategy Driving Innovation and Growth of Profitable Environmental Solutions 3 / March 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 4 / March 2009
  3. 3. A sustainable business strategy INVEST Profit GROW $1.5B in R&D Technology Revenue to $25B GEnx jet PV solar Use 20% more fuel Iberinco – engine panels efficient 10MW carbon- free electricity Caceres, Spain Save REDUCE GHG/H2O Impact lower emissions solar at GE HQ from jet test rig 5 / March 2009 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) ↓ $6.5MM, 59k tons CO2 '07 7.5 8 8.5 9 9.5 10 ’12 Commitment
  4. 4. Innovative technologies…now Revenues ($B) 25 Carbon 20% CAGR 17 14 12 10 Energy Efficiency … '05 '06 '07 '08 ’10 goal • 80 certified products Water • company-wide solutions 7 / March 2009 Innovative technologies…tomorrow Wind $1.5B by 2010 Hybrid evo doubling our 2005 investment Solar OLEDs Advanced Desalination Carbon Capture GEnx Zero Liquid Discharge Energy Storage Turbine Efficiency 8 / March 2009
  5. 5. The Carbon Challenge 60 Energy Related Global Emissions Carbon Capture (Gt CO2/ yr) 14% & Sequestration1 50 12% Nuclear1 Renewables 40 27% & Biofuels1 d 2005 30 Energy Efficiency1 47% 20 10 IEA Reference Scenario 50% reduction path 0 1990 2000 2010 2020 2030 2040 2050 1. Source: International Energy Agency – World Energy Outlook 2008 9 / March 2009 Carbon Mitigation at GE CCS-New Gen IGCC & Precombustion Capture CCS-Retrofit Silicone Based Solvents Nuclear ABWR / ESBWR Wind 1.5 & 2.5 MW Solar PV / Thin Film Biofuels Co-fired Gasification
  6. 6. Global Efficiency Entitlement ~$900B/yr savings opportunity by 2020 (projects >10% IRR)* Industrial Resi Comm’l Transport S: Power S: Fuels ~1% -Q BTU to ‘20 22% 12% ~8% -Q BTU to ‘20 22% Global Efficiency Entitlement: ~130% of US Energy Demand US Demand 19% *McKinsey. July 2008. Savings projections are relative to 2020 “Business-as-usual” scenario. Energy Efficiency at GE Sector EE Products* Growth with early-stage companies Industrial 8 Advanced Processes Residential 6 Smart Homes Commercial 8 Lighting Systems Transport 16 Energy Storage Supply: Power 10 Smart Grid Supply: Fuels 3 Advanced Coatings *Certified Ecomagination solutions as of 12/08
  7. 7. Venture Capital Game-changing technology • Among most active investors in early-, growth- and later-stage Cleantech companies • Partner with other top-tier VCs • Leverage GE’s technical, commercial and financial capabilities and expertise Why GE? • Effective Partner • Champion of eco industry – scale of ecomagination 13 / March 2009 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 14 / March 2009
  8. 8. Case Study: Advanced Electron Beams The Opportunity Compact electron beam emitters Using at GE Global Research Replace thermal and chemical processes Example Applications - Sterilize packaging - Modify membranes The Solution Invested $4MM equity Accelerating applications in other GE businesses 15 / March 2009 Business Strategy Driving Innovation and Growth of Profitable Environmental Solutions 16 / March 2009
  9. 9. ecomagination summary Driving Innovation and Shareholder Value Challenge calls for Multiple Technologies Organic and Inorganic Plays VC connects GE with other world class innovators 17 / March 2009 18 / March 2009