Cleantech Leaders Conference, NYC March 11, 2009

Transcription

1 Cleantech Leaders Conference, NYC March 11, 2009 Steve Fludder, VP, ecomagination "Results are preliminary and unaudited. 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," or "will." 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: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital s funding and on our ability to reduce GE Capital s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; 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 soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; 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 forwardlooking statements. 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 In this document, GE refers to the Industrial businesses of the Company including GECS on an equity basis. GE (ex. GECS) and/or Industrial refer to GE excluding Financial Services. The Challenge Energy Related Global Emissions (Gt CO 2 / yr) Our Generation s Moonshot CO 2 emissions 80% Decoupling needed IEA Reference Scenario 50% reduction path Technology is key 2 / March 2009

2 Business Strategy Driving Innovation and Growth of Profitable Environmental Solutions 3 / March Grow revenues to $25B 2. Double R&D to $1.5B by Reduce GHG 1% absolute 4. Reduce water 20% absolute 5. Inform & Engage public Transparency by 2012 ongoing 4 / March 2009

3 A sustainable business strategy INVEST $1.5B in R&D Profit Technology GROW Revenue to $25B GEnx jet engine PV solar panels Save Use REDUCE GHG/H2O Impact 20% more fuel efficient Iberinco 10MW carbonfree electricity Caceres, Spain lower emissions from jet test rig solar at GE HQ 5 / March 2009 Reducing our own footprint '04 GHG Emissions (MM MT / yr) ' '04 GHG Intensity (MT / $MM Rev) ' > $100 MM savings 5,000+ projects 46 plants '04 Energy Intensity (MM Btu / $MM Rev) ' '06 Fresh Water Use (Billion Gallons) ' $6.5MM, 59k tons CO 2 12 Commitment

4 Innovative technologies now Revenues ($B) 25 Carbon 20% CAGR Energy Efficiency '05 '06 '07 '08 80 certified products company-wide solutions 10 goal Water 7 / March 2009 Innovative technologies tomorrow Wind Solar Carbon Capture Energy Storage $1.5B by 2010 doubling our 2005 investment Advanced Desalination Zero Liquid Discharge Hybrid evo OLEDs GEnx Turbine Efficiency 8 / March 2009

5 The Carbon Challenge Energy Related Global Emissions (Gt CO 2 / yr) 14% 12% Carbon Capture & Sequestration 1 Nuclear % Renewables & Biofuels d 47% Energy Efficiency 1 10 IEA Reference Scenario 50% reduction path Source: International Energy Agency World Energy Outlook / March 2009 Carbon Mitigation at GE CCS-New Gen CCS-Retrofit Nuclear Wind Solar Biofuels IGCC & Precombustion Capture Silicone Based Solvents ABWR / ESBWR 1.5 & 2.5 MW PV / Thin Film Co-fired Gasification

6 Global Efficiency Entitlement ~$900B/yr savings opportunity by 2020 (projects >10% IRR)* Industrial Resi Comm l Transport S: Power S: Fuels -Q BTU to 20 22% 12% ~1% ~8% 22% -Q BTU to 20 Global Efficiency Entitlement: ~130% of US Energy Demand US Demand 19% *McKinsey. July Savings projections are relative to 2020 Business-as-usual scenario. Energy Efficiency at GE Sector Industrial Residential Commercial Transport Supply: Power Supply: Fuels EE Products* Growth with early-stage companies Advanced Processes Smart Homes Lighting Systems Energy Storage Smart Grid Advanced Coatings *Certified Ecomagination solutions as of 12/08

7 Venture Capital Game-changing technology Among most active investors in early-, growth- and later-stage Cleantech companies Partner with other top-tier VCs Leverage GE s technical, commercial and financial capabilities and expertise Why GE? Effective Partner Champion of eco industry scale of ecomagination 13 / March 2009 GE Energy Financial Services VC / Growth Portfolio* Energy Efficiency & Smart Grid Renewables Energy Storage Oil & Gas Transportation *Excludes 1 undisclosed investment Proof of Concept Pilot Stage Early Sales Growth Stage Development Stage 14 / March 2009

8 Case Study: Advanced Electron Beams The Opportunity Compact electron beam emitters Using at GE Global Research Replace thermal and chemical processes Example Applications - Sterilize packaging - Modify membranes The Solution Invested $4MM equity Accelerating applications in other GE businesses 15 / March 2009 Business Strategy Driving Innovation and Growth of Profitable Environmental Solutions 16 / March 2009

9 ecomagination summary Driving Innovation and Shareholder Value Challenge calls for Multiple Technologies Organic and Inorganic Plays VC connects GE with other world class innovators 17 / March / March 2009