GE 2015 Annual Report Download - page 18

Superior
Performance
Powered by
the GE Store
A transformed GE is delivering for you. Over
the next three years, we plan to grow our
earnings to more than $2 per share, or rough-
ly 15% each year. This is based on reducing
our share count, integrating Alstom and
growing our core operating profit. We plan to
return roughly $100 billion to you in buyback
and dividends from 2015–2018.
Further, as we execute our portfolio strategy
and reduce the size of GE Capital, we plan to
run GE with a more typical industrial balance
sheet. This may allow us to increase leverage
by more than $20 billion while still retaining
a highly rated balance sheet. We plan to use
this incremental capital for acquisitions or ad-
ditional buyback, building shareholder value
for the long term.
Our team knows exactly what they need
to do in the future and are compensated
to execute. They also have a competitive
advantage that capitalizes on our unique
depth and enterprise skill. We call this the
GE Store. The GE Store captures our ability
to share knowledge, technology and capa-
bilities across the GE businesses. The Store
delivers results. Over the last five years,
our organic growth has averaged 5%, two
times our industrial peer group. And, since
2011, our margins have grown from 14.8%
to 17.0%.
The Store allows GE to innovate at scale, in-
vesting more than our peers and spreading
the innovation across more businesses. The
Global Research Center is investing to lead
in the material science revolution that is
transforming the way we make things. We
recently invested $50 million in a 3D printing
facility in Alabama to make a critical fuel-sys-
tem component for LEAP jet engines. We will
print 1,000 such components annually, with
a target of raising production to 40,000. The
component is designed to withstand high
temperature and pressure, and was histori-
cally made from 20 different parts. Now, we
are printing the component, with laser fus-
ing of a powered “super alloy” composed of
cobalt, chrome and molybdenum. It is 25%
lighter and five times more durable than its
predecessor. We are transferring this capabil-
ity throughout GE.
The Store provides global scale and capa-
bility. Our global reach has taken decades
to build; the talent, capability, partnerships
and reputation can’t be matched. GE is one
of the world’s largest multi-nationals, with
global orders of $75 billion. Over the past five
years, our global growth has been 7%, twice
the GDP. We invest using a total-company
approach, with most of our facilities used by
all of our businesses. Our global backlog is
$224 billion, with balanced business and geo-
graphic diversity.
GE is an experienced global competitor,
and that really comes in handy as we navi-
gate the changes in China. We will continue
to be a full participant in China; we plan to
have more than $10 billion in revenue and
AD
VAN
C
ED TURB
O
PR
OP
GE Store,
Using the
GE
S
to
astWorks
GE Aviation used technology, expertise and F
as
tW
o
w
fr
om across the Company to aggressively enter a new
mar
k
et wit
h
its cutting-e
d
ge a
d
vance
d
tur
b
oprop engine
fo
r a $40B opportunit
y
over 25
y
ears
.
C
O
MMITM
E
N
T
T
O
L
O
N
G-
T
T
E
RM
O
RGANIC
G
G
ROWT
H
$40B
opportunity over
next 25 years
FastWorks
increased speed
of product
development
Additive
manufacturing
techniques
improved
product cost
Global
supply chain
expertise enabled
efficiency
Manufacturing
footprint
in Europe made
development
possible
16 GE 2015 ANNUAL REPORT