GE 2014 Annual Report Download - page 27

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Value From a Multi-business Company
Great infrastructure businesses built upon technical &
market leadership critical scale to take advantage of global
demographic trends
1
Diversity provides strength through disruptive events & commodity cycles
2
Each business contributes to GE by providing unique expertise to the GE
Store & leverages the GE Store to compete more effectively (see page 11)
3
POWER & WATER
MISSION: Leading globally in power
generation & water technologies
Major products: gas turbines, engines &
generators, steam turbines & generators,
wind turbines, nuclear reactors, water
systems, power generation services
Revenues Profi ts
$28.3B
2012 2013 2014 2012 2013 2014
13%
$24.7B
11%
$27.6B
$5.4B 8%
$5.0B
7%
$5.4B
Other 2014 results
Margins: 19.4% Backlog: $65B
# gas turbines shipped: 108
# wind turbines shipped: 2,879
+ Positive: Growing demand for H-technology,
strong services model, continued growth
in natural gas & strong global demand in
renewables
– Negative: Excess capacity in developed
markets & macroeconomic/geopolitical
environments
Outlook: Outperforming the competition in
a challenging environment
Year Event
Business
Impacted
Businesses
Mitigating Impact GE Response Outcome
2001 9/11
attacks
Energy, GE Capital Invested in
next-gen aircraft
engines
GE 90, GENx,
next-gen CFM
2004 U.S. gas
turbine cycle
bottom
Most other
businesses saw
double-digit growth
Invested to
diversify Energy
Stronger, more
diversifi ed
Energy1
2009 Financial
crisis
Industrial businesses
generated ~$17B of
cash fl ow
Supported GE
Capital with
cash infusions
Smaller GE
Capital that is
stronger &
more focused1
2015 Oil price drop Aviation,
Healthcare
Restructuring Oil & Gas & acquiring
Alstom energy businesses at
attractive price2
How We Are Performing
Revenues Earnings from
Continuing Operations
Attributable to GE
CO
N
SO
LIDATE
D
Backlog Margins
INDUSTRIA
L
$146.7B –
$146.0B
2%
$148.6B
2012 2013 2014
$14.6B
4%
$15.2B
1%
$15.3B
2012 2013 2014
$210B
7%
$261B
15.1%
50bps
16.2%
60bps
15.7%
16%
$244B
2012 2013 2014 2012 2013 2014
1. See How We’ve Made Purposeful Portfolio Moves on page 14 for further details.
2. Subject to regulatory approvals.
Combustion science &
services installed base
Contribution
to GE Store
GE 2014 FORM 10-K 7