GE 2012 Annual Report Download - page 14

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Energy Management. This business
is complementary to our core infra-
structure franchise, yet our share is
less than 10% and our margins are
lower than those of our competitors.
We are seeing outstanding opportuni-
ties for growth in power conversion
and digital energy.
We expect another year of strong
industrial performance in 2013.
Oil & Gas, Aviation, Healthcare
and Transportation should hit
“all-time-high earnings” in 2013.
Our plan targets 10% industrial
earnings growth.
GE Capital had earnings of $7.4 billion,
up 12%. Our Tier 1 common ratio is
10.2%, well above the regulatory goals.
GE received a $6.4 billion dividend
from Capital. Our team has done a
great job of reducing commercial real
estate exposure, which was $46 billion
at year-end, down 50% from its peak.
GE Capital continues to outperform
regional and money center banks in
important areas like net interest mar-
gins and losses.
The “core” of GE Capital is being a
leading lender to middle market
customers, building on our deep
experience in, and understanding of,
these markets and assets. In busi-
nesses like sponsor finance, aircraft
leasing and retail services, and middle
market lending and leasing, GE Capital
has deep domain experience and will
continue to grow.
Our initiatives are delivering results.
We drive cross-company initiatives
to generate organic growth and
improve margins. We review our
progress against our long-term goals
and through relative performance of
20 industrial peers and large banks.
Our performance is near the top in
almost every category, but we still
have room for improvement.
We have built broad technical capa-
bility that can deliver big systems
and foster innovation. Each year we
file about 2,000 patents in the U.S.,
putting GE in the top 10 for innova-
tion. GE engineers and scientists
from around the world collaborate
and demonstrate a real culture
of execution.
GE products deliver vast customer
value. Over the next few years, we will
transform our aviation engine product
line with several new models, including
the launches of GEnx, the CFM LEAP
and the GE9X. Each engine will
improve airline fuel efficiency by 15%,
while reducing emissions. By 2020, we
will have 46,000 GE engines in service,
up from 4,100 in 1990. That is a prod-
uct of our technical expertise.
In Healthcare, we are launching high-
margin products at every price point
and across all modalities. This is how
we win around the world. In computed
tomography (CT), we launched the
Discovery CT750 HD FREEdom, a high-
end scanner, which can greatly reduce
radiation dose. At the same time, we
launched the CT Brivo, sold at 20% of
the price of a high-end scanner, which
is growing share in global markets. In
fact, in the first six months, we sold
100 Brivos to Chinese customers,
many of whom had never owned a CT.
We leverage technology to launch
new businesses. Our Energy Storage
business is a great example of how we
innovate and bring to scale state-of-
the-art technologies. Researchers in
our GRC labs invented a new battery
based on technology from more than
30 patents. GE teams also designed an
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GE GIVES CUSTOMERS ACCESS TO THE INDUSTRIAL INTERNET WHEREVER THEY ARE.
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Transportation Management,
GE Transportation
Intelligent Operations,
GE Aviation
AgileTrac™,
GE Healthcare
12 GE 2012 ANNUAL REPORT
LETTER TO SHAREOWNERS