GE 2010 Annual Report Download - page 8

6 GE 2010 ANNUAL REPORT
LETTER TO SHAREOWNERS
We use the breadth of our portfolio to build strong
relationships in growth markets. We call it a “Company-Country”
approach. A great example of this approach is Brazil.
Last November, we announced the creation of our fifth Global
Research Center, located in Rio de Janeiro. On that day, we
highlighted manufacturing investments in Brazil across Energy,
Oil & Gas, Healthcare, Transportation and Aviation. This broad
capability gives GE the ability to better serve our customers
in Brazil, while allowing us to grow exports. In addition, we are
committed to training our employees, customers and suppliers.
This makes GE a leader in the economic development of
the country.
4 Expand from the core. In 2010, GE generated $20 billion of
revenue from businesses in which we were not present in 2000.
Investing and winning in Infrastructure adjacencies is a core
competency for GE. We plan to generate another $20 billion of
revenue in new markets over the next decade.
To do this, we have launched more than 20 Infrastructure
adjacencies and are in the process of growing them. Each can be
at least $1 billion in revenue, while some will reach $10 billion or
more. By expanding our core, we accelerate growth while building
stronger, more diverse business models.
This year, for example, we will scale up organic investments
in thin film solar energy technology. Through the efforts of our
Global Research Center, our panels are generating 12+% efficiency,
a record for this technology. By utilizing our huge Energy
footprint, we expect to achieve a meaningful market share in the
next few years. This business could reach billions in revenue.
Over time, we create large global leaders like Oil & Gas.
Here we have built a $10 billion business in about a decade,
through organic investment and focused acquisitions. Oil & Gas
has leveraged technical capability and global distribution from
our Energy, Aviation and Healthcare businesses. Our big
Oil & Gas customers know that they can count on GE to execute
complex projects.
5 Create value in specialty finance. In 2011, a key priority is
to better define the connection between GE and GE Capital. The
strategic value of GE Capital is obvious: robust earnings growth;
strong risk management; and cash dividends to the GE parent.
There are also key advantages that are shared by our
industrial and financial capabilities. We have superior knowledge
of assets; this allows us to win in aircraft leasing. We have
deep and established relationships with mid-market customers,
who desire better operations and best-practice sharing with
GE’s Industrial businesses. We have strong operating advantages
versus banks in direct origination and asset management.
This builds competitive advantage in businesses like Retail Finance.
In other words, we can offer more than access to money.
GE Capital is our primary window to serve small and medium-
size businesses. We partner with them and invest in their growth
and success. We are steadfastly committed to GE Capital. During
the crisis, our exposure to financial services was an investor
concern. In the future, leadership in specialty finance will provide
new ways to grow and improve our competitiveness. As a smaller,
more-focused competitor, GE Capital will return excess capital to
the GE parent over time.
6 Solve problems for customers and society. We have
built the GE brand on solving tough problems like clean energy
and affordable healthcare, while building deep customer
relationships. We know that we can solve big societal problems
and earn money at the same time. And our customers buy
from GE because we help to make them more profitable.
Through our healthymagination initiative, we are addressing
the cost, quality and access of healthcare. We are working with
the Ministry of Health (MOH) in Saudi Arabia to improve that
country’s system. For example, there are joint GE/MOH teams
completing “lean” projects to improve operating-room capacity
and lower patient waiting time. We are pioneering in “mobile
clinics” that can take healthcare to remote areas. We are bringing
technical innovation and process skills to improve healthcare in
Saudi Arabia and around the world.
In executing these six strategic growth imperatives,
GE is leading in the capabilities that will create long-term
shareholder value.
We have launched more than
20 Infrastructure adjacencies and
are in the process of growing them.
Each can be at least $1 billion
in revenue, while some will reach
$10 billion or more. By expanding
our core, we accelerate growth while
building stronger, more diverse
business models.