GE 2014 Annual Report Download - page 26

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How We Are Shaping a New Kind of Industrial Company
See the following pages of the 10-K Introduction & Summary for more information.
EPS GROWTH THROUGH 2016
2015 OPERATING EPS GOAL4
$1.70–$1.80
Industrial…$1.10–$1.20 • GE Capital…~$0.605
Expect
EPS
growth
in 2015 & 2016
GE Capital
~20¢
EPS loss due
to split-off of
Synchrony
Financial1 & sale
of non-core
assets
Industrial
Organic Industrial
earnings growth
+ Alstom earnings1
+ restructuring
benefi ts + reduction
in GE’s overall
share count
+ =
1. Subject to regulatory approvals.
2. LEAP is a trademark of CFM International, a 50-50 joint venture between Snecma (Safran) and GE.
3. For information on how we calculate this metric, see GE Corporate Items and Eliminations on page 58.
4. Non-GAAP Financial Measure. See Financial Measures That Supplement U.S. Generally Accepted Accounting Principles Measures (Non-GAAP Financial Measures) on page 94.
5. May be lower, depending on pace of GE Capital ENI reduction.
• Recognized infrastructure leader
• Aggressively repositioning portfolio
— Announced Alstom & GE Appliances transactions1
• Refocused & reduced size of GE Capital
— Completed Synchrony IPO
— Reduced GE Capital ENI by 5% from 2013
• Accelerated cost reductions
— Reduced Industrial SG&A as a percentage of sales 190 basis points
from 2013
— Reduced corporate costs ~$1B3
• Intensifi ed focus on gross margins
• Drove culture of simplifi cation & accountability
— Released GE Beliefs
— Changed executive cash bonus program to align it more closely with key
investor goals, including operating margin, free cash fl ow & ROIC
• Built out GE Store to create unique competitive advantage
— Expanded software & analytics product offerings based on Predix
(GE’s Industrial Internet software platform)
— Services order growth of 10%; Industrial growth market orders +9%
— Big new product introduction (NPI) launches: H-turbine, LEAP engine,
2
Tier 4 locomotive, SIGNA PET/MR scanner, 20K blowout preventer
2014 ACTIONSOUR STRATEGIC
CHOICES
UNIFIED TEAM
CREATE
SHAREOWNER VALUE
BUILD COMPETITIVE
ADVANTAGE
BE IN MARKETS
WHERE WE WIN
6 GE 2014 FORM 10-K