#1GE Investor Meeting GE Oil & Gas 10 September 2014 Imagination at work#2GE Oil & Gas Investor Meeting Forward-Looking Statements: This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," or "would." Forward- looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation's (GECC) funding and on our ability to reduce GECC's asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flows and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC's ability to pay dividends to GE at the planned level, which may be affected by GECC's cash flows and earnings, financial services regulation and oversight, and other factors; our ability to convert pre-order commitments/wins into orders; the price we realize on orders since commitments/wins are stated at list prices; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, power generation, oil and gas production, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change including with respect to the timing and size of share repurchases, acquisitions, joint ventures, dispositions and other strategic actions; our success in completing announced transactions and integrating acquired businesses; adverse market conditions, timing of and ability to obtain required bank regulatory approvals, or other factors relating to us or Synchrony Financial could prevent us from completing the Synchrony IPO and split-off as planned; our ability to complete the proposed transactions and alliances with Alstom and realize anticipated earnings and savings; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. "This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com." "In this document, "GE" refers to the Industrial businesses of the Company including GECC on an equity basis. "GE (ex-GECC)" and/or "Industrial" refer to GE excluding Financial Services." GE's Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE's Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted. (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 2#3GE Oil & Gas today From extraction, to transportation, to end use ... ~45,000 employees ~$17B revenues '13 Drilling & Surface $3.8B BOPS and risers, onshore trees, Artificial lift Subsea Systems $2.9B Subsea production systems 目 Turbomachinery Solutions $4.8B LNG, on- and offshore, pipeline 66566 Downstream Technology Solutions $1.4B Refinery and gas distribution Measurement & Control $4.2B Valves, controls, diagnostics Delivering customer solutions by applying systems-level engineering across the value chain#4Industry outlook Strong fundamentals Base case assumptions More complex resources ~1.5% Oil ~$100 Demand Growth 9% Annual Brent growth ~3.5% Gas Demand Regional pricing continues 9% Growth Annual growth Total industry spend ($B) +6% CAGR 1,370 1,150 '14 '17 In subsea capex 2014-17 In unconventional oil & gas production 2013-18 8% Annual growth In LNG industry spend 2014-17 Long-term fundamentals robust ... increasing technology intensity and cost focus (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 4 Source: GE O&G analysis based on Wood Mackenzie, Rystad, Barclays, IHS CERA, PFC Energy, IEA, GE Age of Gas 2013#5Evolving customer needs Capital efficiency • Modularization and standardization • Relentless focus on execution and returns (GE) Full lifecycle productivity · • • Complex resources • Outcome-based service agreements Sensing + data + analytics to increase performance Solutions for harsher and more remote environments Building on GE technological experience Partnering with customers on their toughest challenges ... Bringing GE's experience from other industries Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 5#6Strategic acquisitions position us to address these needs Drilling & Surface Downhole tools Artifical lift technologies Sondex LUFKIN Dry trees & wellheads vetcogray surface HYDRIL Drilling Pressure Control equipment Downstream Technology Solutions SALOF Small-scale LNG technologies Cameron Reciprocating Reciprocating compression Compressors equipment Flexible risers & flowlines 四 Wellstream Subsea trees, controls, vetcogray wellheads and services ESPs, Dry trees & surface wellheads, WoodGroup Wireline logging Well Support Subsea Systems THERMODYN FRAMATOME NuovoPignone Turbomachinery Solutions DRESSER Valves, actuators and pumps Subsea PRESENs sensing Pressure Sensor Technology NAXYS Subsea leak detection meridium Asset Performance Management Measurement & Control Continuing to drive integration and synergies ... acquisition portfolio outperforming plan (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 6#7Great products & services The GE advantage Gε The GE advantage... a competitive differentiator Example: a project scope Topside & LNG Drilling & Subsea Downstream + end use ( NAZVA MODULE SOU Blow Out Preventers & drilling risers • ~ 20 Subsea Trees & wellheads Production controls systems - 6 Manifolds ~5 130MW Fr-9 modularized GTs • ~3 refrigerant trains ... 6 Fr-7 GTs • ~6 CO2 sequestration trains • ~22 year performance service agreement High-speed compressors Small LNG . CNG Pipeline solutions Power generation M&C - Bently Nevada, Controls, sensors ... enabling Industrial Internet Aviation DNA & process excellence ✓ GE GRC technological edge ✓ Global scale & footprint ✓ Company wide focus on FastWorks ✓ Multi-year project management experience ✓ Global supply chain excellence ✓ Multimodal service capabilities ✓ Strong balance sheet/structuring capabilities Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 7#8Our focus Operational Excellence Laser-focused on safety and quality for customers; project execution and returns Differentiated Products and Services Next generation technology and lifecycle services Local Empowerment and Capabilities Expertise and decision-making located close to customers Best People; Simple Structure Investing in our people; simplifying to drive returns GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 8#9Operational excellence: safety performance Total Recordable Incident Rate (TRIR) Incidents per 200,000 work hours 2.50 Industry 0.75 GE O&G 2.30 2.10 3x better than industry 0.70 0.69 0.60 • · . . Working with purpose to mitigate risk... each employee empowered and responsible Instilling GE safety culture in acquisitions Driving simplification through standardization and lean Recognized with more than 14 awards for 2010 2011 2012 2013 safety performance GE O&G TRIR (excl. acquisitions) API TRIR O&G average Focused on customer priorities ... safety performance = ticket to play (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - API Data - TRIR average across all sectors within the Oil and Natural Gas Industry as reported by the Bureau of Labor and Statistics O&G Data - TRIR excludes Lufkin, Salof and Cameron acquisitions gε#10Operational excellence: improving supply chain Compressing lead times Expanding capacity Improving capabilities Cycle time reduction ... BOP lead time 40% • Flow distribution model upgrade... weeks → days Lean six sigma ... 2,000+ projects... inventory ↓ • Vertical integration... leveraging footprint • ⚫ N. America drilling capacity ↑ • FPSO Brazil localization • UK/North Sea expansion • Angola and Indonesia subsea production ⚫ E. Europe COES APICS • Investing in brilliant factories • Streamlining strategic suppliers... global footprint • Advanced manufacturing • FastWorks ... ERP simplification • Reducing working capital Taking best from GE & other high-tech industries ... new leaders from Aviation/P&W (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 10#11Operational excellence: better project execution Project management academy Integrated planning and projects analytics He Details P&L VI • • . Comprehensive competency model Structured and tailored career path • Certified and controlled roles in project management • (GE) Improving capability of current project managers + building pipeline • Project planning integrated with ERP... real-time project visibility • ⚫ Scalable and flexible... ERP agnostic • Building real time customer access ✓ working capital needs • Better cycle time and lower costs A competitive advantage... first-time yield ↑ 2x in Subsea Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 11#12Operational excellence: helping our customers drive capital efficiency GE DeepWater Vertical Xmas Tree - DVXT Modular proven technology Targets global deep water regions and operators ... Flexible installation for optimal installed cost 3,000m depth rating, 30 year design life API 17D 2nd Ed qualified valves and actuators 18 months cycle time ... 30% faster than industry norm... working capital Driving industry standardization Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 12 225#13Differentiated technology: GE "store" for subsea SOFTWARE CENTER Smart BOP and advanced controls POWER & WATER Water injection and processing MEASUREMENT & CONTROL Leak detection and multiphase flow measurement AVIATION Valve coatings and advanced materials HEALTHCARE Diagnostic software imaging TURBO MACHINERY Pumps and compressor technology ENERGY MANAGEMENT Power transmission and distribution SUBSEA SYSTEMS Subsea production equipment and services GLOBAL RESEARCH CENTER Flow assurance and advanced riser technology Using the entire company toolkit ... solutions for customers дв Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 13#14Differentiated technology: winning on the most advanced projects Shell prelude World's 1st offshore floating LNG GE content • First compressor trains for FLNG Innovative flexible riser design . • Customized offshore cryogenic valves Applying proven GE technology and expertise to deliver transformational solutions GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 14#15Differentiated technology and services: Innovation in deep water drilling 20k psi BOP Asset lifecycle management SeaONYXTM controls Bringing GE Mark Vle to Drilling SeaLytics BOP Advisor™M GE Troubleshooting and Maintenance Management Data-enabled services • Equipment baseline modeling . Condition based maintenance Industry first ... access to 20K PSI and 350°F reservoirs Rig-based re-certification • Digitized asset history Increased reliability Reduced downtime Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 5 15#16Local empowerment: growing our footprint Manufacturing and service shops 171 North America Our global footprint speeds up and improves delivery of services, technologies and expertise • Recent openings in Indonesia, Brazil, the UK and Vietnam 28 Latin America (GE) 40 Europe 11 9 Africa MENAT 4 Russia/ CIS 12 China 6 Japan & Korea 3 India 4 ASEAN 4 ANZ ~45,000 employees worldwide ... 65% global Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 16#17• Local empowerment: in action Brazil . 2,200 employees Subsea, TMS and M&C manufacturing and service • Pre-salt developments research center Angola and Nigeria 900 employees • Subsea and TMS service and manufacturing • Expanding subsea capacity Indonesia • 300 employees • Subsea and pressure control manufacturing localization. Expanding capacity PARA PRESSAO POÇO DE TESTES 22 MIL PS Industry spend -$40B Gε SCOUGH Ο Industry spend -$50B Industry spend $20B Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 17 Source: GE Oil & Gas; spend estimates GE Oil & Gas based on Wood Mackenzie, Rystad#18Simple structures: cost competitiveness (% of sales) SG&A savings Compressor package Product cost savings Drilling risers manufacturing (~250)bps Beam pumps '12 '14E ✓ Consolidating structure ✓ functional cost ✓ Investing in ERP infrastructure ✓ Further integrating acquisitions 30-50% reduction in footprint and weight... performance cost 10% Moved to best cost country & closer to customers logistics Leveraging GE global supply chain capabilities ↑ volume cost 10% cost 17% Scaling programmatic approach across O&G: ✓ Engineering/design and sourcing focus ✓ Cross functional COEs driving cost ✓ ✓ Multi-platform component strategy GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 18#19Financial performance ($ in billions) Orders $20 $17 $2.2 +/++ ++ ++ Revenue Op Revenue Op Profit 2013 Profit 2014E Current environment • IOC focus on returns driving volatility in offshore award timing Onshore and LNG strong, M&C improving Delivering for our shareholders • Growing ahead of industry - Investing in technology and lifecycle services... FastWorks - Building local capabilities • Improving margins and returns - Driving operational excellence -working capital needs Great long-term growth platform... improving returns (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 19#20Improving margin and returns Op Profit % 13% 1H'14 +60 bps. ++ ✓ Further integrating acquisitions • • Well Performance Services ... Artificial Lift + Lufkin Reciprocating compressors ✓ Driving product standardization ✓ Costs out program: Product, project, SG&A ✓ Simplifying IT systems ... ERP 25% + shared services 1.5x ✓ Improving capital efficiency '13 '14E Project management • • Supply chain capacity & localization Supplier partnerships Expect improvements to lead GE portfolio... focused on delivering for shareholders (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 20#21Best people: GE Oil & Gas team 17,200 manufacturing employees 7,400+ Oil & Gas 7,400 139 FSES nationalities 4,500 Here today Turbomachinery Solutions Rafael Santana Downstream Technology Solutions Hasan Dandashly engineers commercial people Subsea Systems Rod Christie Drilling & Surface Andrew Way Engineering Eric Gebhardt Measurement & Control Brian Palmer Communications Becky Edwards Finance Brian Worrell (GE) Deep industry expertise + GE knowledge base and experience Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 21#22Gas infrastructure Rafael Santana Hasan Dandashly KATAAN#23GE present across gas infrastructure landscape Industry Typical Upstream onshore and offshore gas $5-20B project Capex GE presence LNG FLNG Pipeline Downstream gas $10-30B $5-10B $1-5B $0.1-0.3B PRODUCTION PROCESSING TRANSPORTATION DOWNSTREAM Upstream power and gas handling Liquefaction Compression stations Small LNG CNG Customer Service Agreements + Monitoring and Controls Compelling portfolio in gas (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 23#24Winning in LNG Industry growth rate (Spend CAGR 2014-'17) 8% Best-in-class and most referenced technology • • • Integration capabilities ... complex rotor dynamics Gas turbines and compressors... highest power density, 30% footprint eLNG... driven by new electric motors... 30% CAPEX Annual industry spend (2014 $ in billions) Partnering with customers • Modular solutions ... 30% lead time • Product co-development... industry firsts • Local field engineer and service shop infrastructure $42 ૫ Providing best life-cycle cost • More efficiency, availability • LNG Max Reliability... Outcome-based services Maintenance extension and outage reduction GE technology is powering the production of ~300 MTPA of LNG Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved GE O&G analysis based on Wood Mackenzie, Rystad, Barclays, IHS CERA, PFC Energy, IEA, GE Age of Gas 2013 24#25Winning in offshore Optimized topside solutions • Designed for value ... SeaSmart™... ✓ footprint >20%, durability & efficiency • Differentiated value for floating LNG Industry growth rate (Spend CAGR 2014-'17) 7% Annual industry spend (2014 $ in billions) $360 Partnering with customers • Product co-development... advanced compression • Localization in emerging markets Investor Meeting | 10 September 2014 Predictivity-enabled services • . Predictive maintenance ... availability, reliability Digital outage management... optimized cycle • Unmanned operations... remote tuning © 2014 General Electric Company - All rights reserved 25 Source: GE O&G analysis based on Wood Mackenzie, Rystad, Barclays, IHS CERA, PFC Energy, IEA, GE Age of Gas 2013#26Driving faster innovation in technology and services Applying advanced OEM expertise throughout product life-cycle Raising efficiency and reliability standards in 10-20MW power range New Product GE • Industry's most compelling portfolio... Serving an installed fleet of 24,000+ units... 3 RM&D centers • Customer outcome-based services... • driving production and cost optimization Injecting new technology into mature fleets... Upgrades to improve asset life and performance (GE) Investor Meeting | 10 September 2014 Broad applications ... Expanding offering into a $5B+ annual market opportunity FastWorks... conceptual design to production in 30 months Best in class efficiency, emissions • Innovative Maintenance Philosophy... ↑ availability through Predictivity solutions © 2014 General Electric Company - All rights reserved 26#27GE brings valuable solutions to customers Freeport LNG North America's 1st eLNG g GE MA Investor Meeting | 10 September 2014 Oil & Gas • Main refrigeration compression trains, Bently Nevada vibration system • World-class full-load testing • Turn-key systems integration and project execution • Integrated plant and power grid modelling Energy Management • Motors Generators Energy Financial Services . Debt Export credit © 2014 General Electric Company - All rights reserved 27 27#28Downstream: connecting gas supply & demand Gas source Unconventional New finds Flared Stranded Transport Virtual pipeline Small-scale LNG LNG containerizing, transport, storage and fueling Distributed Power SALOF E&P CNG system CNG transport, storage, and fueling Mining (GE) Flexible solutions for new gas to power networks Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 28#29Small-scale LNG fueling new opportunities Modular LNG plants 25K gal/day - 600K gal/day • • Full scope LNG plant Modular, factory-tested design •Fast installation and ease of operation • Integrated plant controls Global Operating Installations • 11 plants in operation • U.S., China, Middle East, Russia, and Australia 13 plants under development • enCryo JV in China Indonesia Gas to Power LNG existing LNG proposed LNG Regasification SS LNG concept Gas pipe existing Gas Pipe proposed Marine CNG/LNG . Partnering with Pertamina & GE Distributed Power 2.5 GW & 3.5 MTPA Potentially 14-16 MMBtu delivered by sea Leading development in North America ... positioned to scale globally Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 29#30Partnering to fuel the future of industry Gas monetization with CNG GE Technology Expertise • Capital experience ferus Energy services, expertise in supply Oilfield Cryogenics & Logistics and delivery of cryogenic products VNG.co Experience in transport fueling infrastructure development Statoil Last Mile™M fueling solution Fully-integrated natural gas fueling solution for diesel replacement in E&P Oilfield operations Gε GE Capital Fleet Services CNG refueling for GCFS fleet customers CNG fueling infrastructure for light-duty NGV fleets NGV fueling (GE) Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 30#31Onshore and Unconventional Oilfield Andrew Way ૫૭ 6#32Onshore... expanding in upstream value chain Industry growth rate (CAGR 2014-'17) 6% Annual industry spend (2014) >$100B Unconventionals Focus to date Growth 2015+ DRILLING EQUIPMENT GE PORTFOLIO SURFACE WELLHEADS ARTIFICIAL LIFT Exploration Development Production WIRELINE & LOGGING OILFIELD POWER & COMPRESSION DRILLING MEASUREMENT ↑ scope + scale + value of offering to operators Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 32 GE O&G analysis based on Wood Mackenzie, Rystad, Barclays, IHS CERA, PFC Energy, IEA#33GE Gas lift ESP PCP Investor Meeting | 10 September 2014 # Building a well performance platform Well Performance Services Offering full range of artificial lift ... increased customer + regional coverage, applying GE R&D + Integrating automation and production optimization + software ... common platform across lift technologies Refining GE's oilfield operating model closer to customers, service focus Industry's most compelling artificial lift portfolio... Wood Group ESPs + Lufkin + NPIs... Foundation for continued growth Rod lift Automation Plunger lift © 2014 General Electric Company - All rights reserved 33 33 Hydraulic lift#34Focus on customer outcomes Full well-lifecycle offering Production (bbl/d) ESP Rod Lift Responding to customer needs Flexible lift solutions as flow changes •Well optimization... Zenith downhole sensing + ESP + Intelligent Platforms Flexible power and compression solutions · • Performance-based contracts Lease/rental models ↑ Recovery ↑ Speed ↓ Costs ↑ Cash flow Sensing, Control & Automation Oilfield power & compression Asset and well optimization D LURKIN ↑ Presence in upstream value chain + Case study: Middle East Customer · Field automation system... Downhole sensing + ESP Manage equipment and adjust production rates Value • Targeting 5% production per well · predictability and intervention planning exposure to production loss and cost Broadest lift portfolio + lifecycle offering + Utilizing decades of GE reliability experience Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 34#35Subsea Rod Christie GE#36GE Oil & Gas subsea systems Industry fundamentals >$30B m (2014: $ in billions) Customer spend >50% (of future IOC production) Deepwater production 9% (CAGR 2014-'17) Industry growth rate Quest's tree awards profile Rest of the world Brazil '12 '13 '14E '15E '17E Product portfolio Trees Manifolds Controls Power & Processing Offshore Flexibles Services © 2014 General Electric Company - All rights reserved 36 GE Investor Meeting | 10 September 2014 GE O&G analysis based on McKinsey, Wood Mackenzie, Rystad, Barclays, Quest#37Product structuring development Trees Structured deepwater VT & HT tree systems Manifolds Structured manifold systems Controls World record offset control Processing Power and Processing systems • Modular proven building blocks • Standard testing and documentation • Supply chain optimization ● Drives cost and cycle • Project technical and schedule risk reduction 20% cost and cycle reduction through standardization Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 37 40#38Subsea power and processing Bringing leading edge technologies... ... Into standardized modules ... Blue-CTM compressor Benefits for our customers: • Simplified design ... cost and cycle time Standard module sizes Reduced installation & intervention costs Compression Cooling Power Pumping ...Simplifying system design Multi-Module Processing station A $4B sector by 2020 ... enabling new services models Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 38#39Life-of-field services expansion ~20% Lag in subsea well recovery ~4000 Wells/XTS >5 yrs. old 14% (CAGR 2013-'17) Intervention segment growth rate INSTALLATION CAPEX Driven 2-3 yrs. PRODUCTION INTERVENTIONS OPEX Driven ~25 yrs. DECOM Annual >$20B (~$10B Spend хт Well Controls Install/Recovery Intervention Upgrades Equipment Repairs Remote Monitoring Well Abandonment Enhancing customer recovery and productivity GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 39 GE O&G analysis based on McKinsey, Wood Mackenzie, Rystad, Barclays, Quest#40Differentiation through technology and service Eric Gebhardt Brian Palmer GE#41Driving innovation for customers Investing in technology ... Delivering at scale New enabling technologies Physics based models Imaging and sensing Next-gen compression • • ~$5B annual GE R&D spend 50,000 engineers 7 Global Research Centers, including the O&G-focused GTC • 1 Advanced Manufacturing Center • 13 O&G Technology Solutions Centers FastWorks approach New product introductions Validate technologies Aviation rigor Co-develop w/customers Large-scale customer projects Systems-level thinking Rigorous design process Integrating the GE Store GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 41#42Advancing technology... Transitioning research into new products • Nano coatings . Powder metallurgy • Bridge alloy • Large eddy simulation ⚫Flow modelling . • Wireless testing Materials for harsh environments ↑ reliability ↑ recovery System modeling and simulation ↑ performance Industrial internet ↑ applications ↓ cycle time . ↑ monitoring • Intelligent pipelines Oilfield optimization • Digital Thread Advanced manufacturing ↓ costs ↑ reliability The power of GE technology Investor Meeting | 10 September 2014 00 Model-based enterprise ⚫ 3D additive ⚫ Virtual assembly © 2014 General Electric Company - All rights reserved 42 (GE)#43Advanced Manufacturing: Driving the future of performance • Coating and cladding Enabling operation in harsh environments Lead time reductions Virtual manufacturing • Validating "manufacturability" • Virtual reality for field and service training Additive manufacturing . Rapid design and prototyping • Removing design constraints (GE) 1000000 Coating of compressor casing Assembly process simulation Fuel nozzle swirler prototyping Capitalizing on breakthroughs and investments across GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 43#44Oil & gas industry is faced with expanding challenges And customers need our help $800B+ Annual industry CAPEX $150M + Average annual cost for (6-8% growth per year) mid-size LNG facility due to unplanned downtime $ 5-10% Range of O&G industry's estimated downtime !!! (GE) Customer challenges ! ! Increasing complex operations Equipment Equipment Availability Reliability Tighter regulations ! Skills gap Operational Machines with data potential Efficiency Production Optimization Industrial Internet ... turning data into actionable information Enable no unplanned downtime Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved Sources: GE O&G analysis based on Wood Mackenzie, Rystad, Barclays, IHS CERA, PFC Energy, IEA. http://www.ge.com/stories/oil-and-gas-innovation, Oil and Gas Facilities 2013 http://www.spe.org/ogf/print/archives/2013/06/ 44#45Measurement & Control An enabler for Oil & Gas DOWNSTREAM Valve diagnostics COLD OFD TO TOPSIDE Integrity Management Prognostics Motor Monitoring Corrosion Inspection NDT Solutions Center GE INVESTMENTS Condition Monitoring Inspection & Monitoring Flow Assurance Data/ Communications DRILLING & COMPLETION RISER Fiber Optic Sensing Riser Monitoring Multi-phase Flow PRODUCTION Valve Diagnostics Physical/Virtual Multi- phase Flow metering ONSHORE Remote diagnostic Decision support Systems Integration Valve Diagnostics Modeling Drilling Drive CM Drilling BOP CM BOP Sensor RM&D Early Kick Detection UMBILICAL Insulation testing TREE/JUMPER/FLOW-LINE Ultrasonic Sensing Connector Acoustic Sensing SUBSEA CONDITION MONITORING SUBSEA INSPECTION Subsea DDA Acoustic Monitoring Pressure Sensing WELL/DOWNHOLE Pressure Sensing Multi-phase Flow TO Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 45#46PredixTM ... enabling production optimization FastWorks: Customer outcome driven Customer Who is our customer and what are their challenges? Iterate What changes do we need to make? Vision How could we solve their problem? • Engage early • Empowered teams Implement fast Experiment Iterate Learn, Pivot/Persevere Improves outcomes + Accelerates commercialization Build Testing the vision - Learn What did we quickly & minimally learn? SafireTM Multiphase Flow Meter SAFIRE Co-development effort... Chevron | GE | Los Alamos • Optimized production = improved customer revenue • Data feeds customer portal • • Leveraging GRC's technology Staged development - FastWorks Oilfield Production Optimization Unified Customer Portal GE Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 46#47PredixTM ... better, safer outcomes for the pipeline industry Customer outcomes & opportunities Enhanced safety Proactive versus reactive decisions. Technology information Complete geospatial view and situational awareness for pipeline management, integrity and operations. Efficient O&M spend Prioritize spending for assets and resources. Delivering optimized operations Allocate resources more effectively, based on integrated data. 2TB of data for every 30K 3-4% annual growth $40B miles of pipeline (Gε) First customer Columbia Pipeline Group SM invested by pipeline 2MM miles of companies per year pipelines globally 5 year service contract Setting the industry standards for pipelines real-time intelligence Moving to predictive solutions with our customers Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 47 Source: 2TB - Average data volume based on GE internal analysis of multiple pipeline customers. Rest - GE O&G analysis based on Douglas Westwood, IHS CERA, FERC, CIA World Factbook, PII Pipeline Database (Summary of Infield Systems, Global Data DOT databases)#48Summary Lorenzo Simonelli ૫૭ O#49Summary ($ in billions) Orders (GE) $20 ++ $17 +/++ $2.2 ++ Delivering for shareholders • Rev OP Rev OP • '13 '14E Strong long-term industry fundamentals ... planning growth ahead of industry Built compelling portfolio, great global presence Technology differentiator ... all of GE's expertise New solutions in a changing energy landscape Driving operational excellence to increase margins and returns We fuel the future We push the boundaries of technology to bring energy to the world Investor Meeting | 10 September 2014 © 2014 General Electric Company - All rights reserved 49#50GE