Energy Transition Market Growth
Pro Forma Adjusted EBITDA*
Pro Forma Adjusted EBITDA* and Pro Forma Adjusted EBITDA margin*
For the year ended December 31, 2023 ($ in millions)
Net income (loss) (GAAP)
Add: Restructuring and other charges(a)
Add: Purchases and sales of business interests (b)
2023
Pro Forma
(576)
433
(92)
Add: Russia and Ukraine charges(c)
Add: Non-operating benefit income(d)
95
(567)
Add: Spin-Off and separation costs(e)
Add: Depreciation and amortization (f)
Add: Interest and other financial charges - net(g)
Add: Provision (benefit) for income taxes(g)
Adjusted EBITDA (Non-GAAP)
Net income (loss) margin (GAAP)
48
847
70
512
770
(1.7)%
2.3%
Adjusted EBITDA margin (Non-GAAP)
Management Adjustments - Recurring cost estimate(h)
Adjusted EBITDA* after Management Adjustments
Adjusted EBITDA margin* after Management Adjustments
(200)
570
1.7%
$
2023
Reported
(474)
433
(92)
95
(567)
847
53
512
807
(1.4)%
2.4%
EGE VERNOVA
(a) Consists of severance, facility closures, acquisition and disposition, and other charges associated with major restructuring programs.
(b) Consists of gains and losses resulting from purchases and sales of business interests and assets.
(c) Related to recoverability of asset charges recorded in connection with the ongoing conflict between Russia and Ukraine and resulting sanctions.
(d) Primarily related to the expected return on plan assets, partially offset by interest cost.
(e) Consists of non-cash non-recurring expenses to be incurred during the twelve months following the Spin-Off for the development of advanced research and other
technological infrastructure.
(f) Excludes depreciation and amortization expense included in Restructuring and other charges, the Steam Power asset sale impairment and Russia and Ukraine charges.
(g) Given the nature of certain strategic investments in renewable energy tax equity investments, our Financial Services business has historically been measured on an after-tax
basis. While the pro forma adjustments give effect to the removal of these investments, including associated interest expense of $44 million and production tax
credit benefits of $183 million, we have maintained an after-tax measurement of the Financial Services business for purposes of presenting Pro Forma Adjusted EBITDA* for
2023, which includes interest expense of $1 million and provision for income taxes of $15 million after adjusting for the transfer of investments to GE.
(h) Includes recurring and on-going costs expected to be incurred during the twelve months following the Spin-Off to operate new functions required for a public company.
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* Non-GAAP Financial Measure
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