GE 2011 Annual Report Download - page 11

2012: FOCUS FOR INVESTORS
you view GE as a safe growth company,
with an attractive dividend yield
that can invest and achieve returns
well above our cost of capital, we are
in a good place for investors.
Competitive advantage is about
outperforming our peers, building an
attractive fi nancial profi le and
rewarding investors. In our chosen
industries, we are ahead today. Our
fi nancial results should exceed the
S&P 500, with a more valuable profi le.
THE VALUE OF COMPETITIVENESS
We live in a tough era in which the
public discourse, in general, is negative.
I worry that the mood of the times
prevents us from moving forward.
American companies, particularly
big companies, are vilifi ed. There is
social unrest in many corners of the
world. This should not be a surprise.
Our problems are diffi cult; when
economic progress is uneven and
unemployment is high, we need to
work together to fi nd a better way.
In these times, it is diffi cult to explain
the benefi ts of globalization. GE is an
infrastructure company. The U.S. is
not investing much in infrastructure,
but most other countries are. We will
sell 140 heavy duty gas turbines in
2012; fewer than fi ve will go to the U.S.
So, we must sell in 120 countries;
we must build global capability; we
must export. In the last decade our
exports have more than doubled,
creating thousands of high-paying
American jobs. We are consistently
among America’s top exporters. Are
we “un-American” because we sell
around the world? No. Our company,
because of our great people, can win.
And, that is the American spirit.
Last year, I told you that I was asked to
lead the President’s Council on Jobs and
Competitiveness. When the President
asked, and given the state of the coun-
try, I felt that saying “yes” was the right
thing to do. I was honored to do so.
In January, we gave our year-end
report to the President. We had three
key messages: the country has lost
ground in relative global capability; we
have multiple ways to create more
jobs, but they require leadership and
teamwork; and our long-term success
must be built on a foundation of com-
petitiveness. The Council delivered
more than 80 specifi c recommenda-
tions to the President, half of which are
being implemented. I know that the
U.S. can and will do better in the future.
In the process of leading the Council,
I learned a few things. Competitiveness
comes fi rst. As a country, we must
love to compete again. As a nation,
we must love to win. We simply must
create more competitive structures
in this country, improving areas like
education, infrastructure and regulation.
If we focus again on competition and
innovation, I know we will win and
create jobs.
Words and actions count. People in this
country can work together, but only
if they are properly led. It starts by
solving tough problems together, like
the defi cit. We need to be a country of
action, not just words. We need to be
a country where we engage everyone,
the entire team.
At GE, we like working together. We see
the future as interesting, exciting and
fi lled with opportunity. We have a
better portfolio, we have invested in
competitive advantage, and we have
the culture of GE Works.
GE will compete. And we will win in
every corner of the world. We are
optimistic and ready for the future. We
are proud of our company.
GE Works. For investors, this means
solid earnings growth and a solid
dividend foundation. For employees,
it means a belief in a better way,
a relentless drive to invent and build
things that matter. For customers,
it means more profi table solutions.
And for society, GE will help create a
world that works better.
Jeffrey R. Immelt
Chairman of the Board
and Chief Executive Offi cer
February 24, 2012
1
INDUSTRIAL
GROWS 10%+
AND
RETURN CASH
FROM
GE CAPITAL
2
BUILD
SOFTWARE
AND
ANALYTICS
CAPABILITY
3
INVEST IN
GLOBAL
GROWTH
AND BUILD
SUSTAINABLE
PROCESSES
4
BEST-IN-
CLASS
OPERATING
PERFORMANCE:
GROW
MARGINS
5
CAPITAL
ALLOCATION:
ATTRACTIVE
DIVIDEND
GE 2011 ANNUAL REPORT 9