GE Water & Process Technologies

Transcription

1 GE Water & Process Technologies Jeff Garwood President & CEO GE Water & Process Technologies Why the Water market? Macro water environment Facing unprecedented issues Only natural resource with no substitute Demand Supply Quality ~3B people in a Water Scarce region by 25 Water-borne illness cause of death Water is the lifeblood of industry / humanity China Daily: water has turned out to be a bottleneck in the capital s social and economic development. US Sen. Pete Domenici:.. see a future where supply and demand don t balance Ft. Worth Star-Telegram: 85% of the state s projected population will not have enough water by 2060.

2 Why the Water market? ($ in Billions) Total market GE growth focus Target attractiveness ~$380B Industrial services Key Profit Segments ~$40B Ind l. Svcs. $7 Equipment $15 Filters Residential $5 4% High growth Services Technology differentiation Global capability GE scale an advantage Great GE Fit Water strategy Total market ~$380B Industrial services Key Profit Segments Segmentation GE Focus ~$40B Ind l. Svcs. $7 Equipment $15 Filters Residential $5 CM% >40% Growth rate 2-3X GDP 4% Investment $3B+ Betz, Ionics, Osmonics, Ionics, Glegg Betz Osmonics Value creation What we bought Great distribution Strong technology Domain Experts + What we bring Global distribution Services More technology Financing Public policy More leadership Integration expertise In the game... committed

3 High value portfolio ~50% GE Nalco Siemens Veolia / Degremont Dow Pentair Ind l. Svcs. 50%+ Equipment 35-45% Filters 50% % Residential 45%+ Contribution Margin Rates Only total water solutions provider Enterprise Odessa (Ukraine) $4.2MM $0.5MM Consumables Odessa Port Plant $11MM Enterprise Sell Capital.1MM $190K +$500K annually Initiated by Capital extended to, Consumables,

4 06 Execution focus Year of Heavy Lifting Reorganized & restructured Field through backroom Product sales to solution sales VCP/material cost out LCC Simplified the business Getting to YES Formed Product Management structure Globalized processes speed/effectiveness Solid results Organic growth rate Enterprise wins G&A costs Further expanded the portfolio Closed Build out emerging mkt. capability (+200 Resources) Initiated a 15%+ expansion in Mobile fleet On the right trajectory Global growth GE Water revenue growth ( CAGR) Continued actions ~5% ~35+% Leverage GE scale Invest in country - Technology & fulfillment Redeploy service capability Developed Developing 70% 30% Enhance project capability - Partnerships, financing Monetize Water Scarcity Going Where the Growth Is

5 Globalization highlights Canada $3B water opportunity oil sands Zero liquid discharge footprint Eastern Europe $1B water opportunity $11MM Odessa full portfolio China $10B water opportunity $16MM Shenhua Power reuse Middle East $3B water opportunity $125MM Palm integrated desal Latin America $377B energy / water projects Multiple wins with chemical portfolio Australia $122B energy / water projects $7MM Austar full portfolio Expanding global portfolio MEA dynamics ($ in billions) GE Solutions Population 0.2B Water market $3B Thermal RO desal Partner with Energy Saudi Arabia 63x less renewable water per capita than US 28x less than Italy Saudi Aramco water is key to sustainability UAE agricultural withdraw 10x renewable water resources Localized investment Dubai, Saudi Water balance assessments Local alliances & partnerships Advanced UF pretreatment & thermal desal chemicals Life-cycle mgt and asset preservation (new TOC instr.) In-country, for-country mfg. Local alliances & partnerships $0.5B+ opportunity thru 09

6 China dynamics ($ in billions) GE Solutions Population 1.3B Water market $10B 21% of world population but only 7% of world s renewable water supply 55% of industrial wastewater goes untreated Infrastructure gaps low treatment ratio and high losses ~$11B industrial output loss due to water shortage $0.5B+ opportunity thru 09 Industrial water reuse Desalination for new water Distributed water/wastewater Specialty membranes for recovery Emergency water supply Mobile desalination solutions Water balance assessments Spread Developed practices Infrastructure oil sands GE opportunity World s 2 nd largest hydrocarbon reserves $20B invested to date $110B by x current production by 2015 to: 3.7B barrels per day 4.5% global demand Energy, Water, O&G, EFS and C&I Industry selling team in place Coordinated mktg. effort trade, GE day >$0.5B Infra. opportunity in 07 Only GE resourced to capitalize

7 Water + Energy Desal 1.25 GE Water + GE Energy Cost of Water $/m Water Reuse Cost Desal Cost GE capability Technology LMS 100 Power + Water Innovative MED Plant RO Plant Cost of Traditional Water Supply 2010 Innovative GE Gas Turbine Heat Recovery System Desal/Reuse Economics Energy = 35-60% of operating cost Membrane & filter technologies Water (pre) treatment advancements Developing Gas Combined Cycle + RO / Thermal Addresses Middle East needs today Cost of water: Cost of electricity 1 GE uniquely positioned to deliver Summary ($ in billions) Positioned for Success Broadest portfolio in industry Revenue ~$1.9 ~$2.1 Global needs match GE strengths OP ~$0.1 ~$0.1 Improving performance growth, margin expansion, simplification '05 '06E Building global footprint Building good momentum OP up 2X+ in 07