GE Consumer & Industrial

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1 GE Consumer & Industrial A business update for Bank of America Jim Campbell President & CEO May 10, 2007 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 often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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. Agenda Consumer & Industrial: Overview Assessing our markets/industries Positioned to win Appliances Lighting Industrial Summary 1 /

2 Agenda Consumer & Industrial: Overview Assessing our markets/ industries Positioned to win Appliances Lighting Industrial Summary Consumer & Industrial: $13.7B in revenues Appliances Lighting Industrial $7.3B revenues Strong brand High-end growth LCC sourcing $2.8B revenues Strong brand Growth/investment in energy efficiency $3.6B revenues Strong brand; large installed base Expanded global footprint; growing high-tech 4 /GE - Consumer & Industrial /5/9/ /

3 Global footprint 62K employees, 119 plants, sales in 150 countries Canada 1,700 EEs 6 Plants United States 27,000 EEs 56 Plants Latin America 9,600 EEs 19 Plants Europe 16,000 EEs 26 Plants Asia 8,500 EEs 12 Plants Agenda Consumer & Industrial: Overview Assessing our markets/ industries Positioned to win Appliances Lighting Industrial Summary 3 /

4 Industry overview Appliances 07 industry driven by housing slowdown Strong employment supporting retail/ consumer spend Baby Boomers continue spend on high-end upgrades Lighting Industry facing significant change Energy efficiency critical Longer life driving unit decline Electrical Distribution Tale of two markets in 07 strong equipment, weak residential Large projects continue to be strong Infrastructure growth driving global market US Core Industry Units (MM) '06 '07 '08 V% (0.7%) (4.2%) 2.5% '06 '07 '08 V% (Units) (1.5)%(3.0)%(2.0)% V% (NSB$) 0.3% 0.6% 0.4% NEMA ED&C ($B) Source: Stevenson Source: NEMA Outlook '06 '07 '08 V% 10.0% 2.0% 4.0% Source: NEMA Outlook A summary of C&I s 2007 environment Headwinds Tailwinds Inflation Global Industrial Housing starts Consumer market 8 /GE - Consumer & Industrial /5/9/ /

5 Agenda Consumer & Industrial: Overview Assessing our markets/ industries Positioned to win Appliances Lighting Industrial Summary Common growth drivers across C&I business segments New Product Investment -biggest launch year ever 155 new products 35% increase in spending since 2004 Globalization -low-cost country sourcing -localization -emerging markets Energy Efficiency -leaders in energy efficient products -products to move energy efficiently 10 /GE - Consumer & Industrial /5/9/ /

6 Appliances Investing for leadership 2007 Appliances new product introductions Monogram DD Cooktop Comm. Kitchen FSE Upgrade 2007 MY Celaya 40% increase in spending since 04 Bottom Freezer Dual Cavity Range Wall-oven Upgrade Monogram Upgrade 12 /GE - Consumer & Industrial /5/9/ /

7 Brand management/global sourcing drive profitable growth High-end sales ($B) $1.6 $1.8 $ OP% ROTC% '04 '05 '06 Profile ASP $687 $705 $727 Monogram ASP $1,321 $1,343 $1,364 China sourcing $460 $400 U.S. China Cost to produce 13% savings 13 /GE - Consumer & Industrial /5/9/2007 Growing Monogram: the high-end story Industry Opportunity $4.2B % AAGR The Monogram Experience Center GE Strategy for Growth Fund leadership products -$60+MM invested Build stronger supply base -Acquired DRI 05, established Monogram Refrigeration, LLC Improve/differentiate service -White Glove Service pilot Intense sales training experience -Monogram Experience Center 14 /GE - Consumer & Industrial /5/9/ /

8 The Monogram Experience Center 15 /GE - Consumer & Industrial /5/9/2007 Meeting customer needs: introducing GE s Café line Accomplished and affordable. Restaurant inspired appearance & features. Easy upgrade. standard freestanding appliance dimensions. First Choice % Last Choice % Already a winner GE CAFE 35 8 GE Café and GE PROFILE 29 6 GE Profile #1 & #2 among high-end consumers Brand #1 Brand #2 Brand # Source: Stevenson consumer research study March /GE - Consumer & Industrial /5/9/ /

9 Leadership in energy efficient appliances Winner of the ENERGY STAR Partner of the Year "Sustained Excellence" award for the second year in a row In 2006 alone, GE invested $55 million in ENERGY STAR appliance models to create 309 new models up 31% over GE currently offers 519 ENERGY STAR qualified appliances, representing 50% of all GE appliance products. Partnering with Masco Contractor Services to create homes that lead the market in energy-efficiency, water conservation, use of renewable power. Lighting 9 /

10 The lighting landscape is changing Long life & energy segments growing quickly ($ MMs) Growth Rate AAGR% Diameter of bubble indicates Long life/ energy segment size LFL T5 25% LED CMH 15% CFL + - 5% (5)% HAL INC QMH LFL T8 LFL T12 HPS (15)% Energy Efficiency (LPW) Market Reality Traditional products under volume pressure, e.g. incandescent Growth areas (CFL, LED, etc.) driven by energy efficiency and long life 19 /GE - Consumer & Industrial /5/9/2007 GE well positioned in CFLs Consumers want long life, energy savings, eco benefits GE delivers Global industry sales ( 05-09) CFL +16% INC (5)% GE CFL sales growth ( 04-06) 35% AAGR /GE - Consumer & Industrial /5/9/ /

11 GE adding value with LED technology LED innovation to deliver energy efficiency Transportation Signals Signage & Architecture Refrigerated Display GE Strategy for LED Growth Build on Lumination leadership Best-in-class core products Strategic alliance with Nichia General Illumination Investing in NPIs Drive general illumination focus 21 /GE - Consumer & Industrial /5/9/2007 Investing in energy efficient lighting to grow, satisfy consumer preferences $200MM invested in energy efficiency since & 07 Winner of the ENERGY STAR Partner of the Year "Sustained Excellence" award August 06 $100 million invested to grow LED business Feb. 07 announced advances in incandescent technology HEI lamps targeted for market by 2010 March 07 formed strategic alliance with Konica Minolta to accelerate commercialization of OLEDs 11 /

12 Industrial Three-pronged strategy driving Industrial growth New Products Launches 25% Localization Targeted increase 25% Emerging Markets % of C&I s Growth 15% 25% /GE - Consumer & Industrial /5/9/ /

13 Localization critical to global growth Targeting partners & BD in key global platforms goal of 25% growth Middle East UPS ATS Latepoint ID China Brazil UPS/IEC South Africa LV/MV SWGR IEC 25 /GE - Consumer & Industrial /5/9/2007 Industrial new products Investing to upgrade capability in core products CPS Plus Switchboard Big Bang Controls Power Quality SG 750kVA 4/6 Pole Uprates Motor 20% increase in spending since 04 Tandem MCB Paradigm Relay 450 TEFC Motor Integrated SB 26 /GE - Consumer & Industrial /5/9/ /

14 Leveraging emerging market growth GE well positioned for global opportunities Middle East $700Bn in investments Construction industry continuing to drive momentum 16% AAGR for C&I, Asia India and China doubledigit GDP growth Mega projects dominating industrial growth 25% AAGR for C&I Latin America Panama Canal and adjacent opportunities Strong residential and commercial growth fueling IEC opportunities 16% AAGR for C&I, Saadiyat Island $27B Macau Casinos $750MM Panama Canal $75MM 27 /GE - Consumer & Industrial /5/9/2007 Agenda Consumer & Industrial: Overview Assessing our markets/ industries Positioned to win Appliances Lighting Industrial Summary 14 /

15 C&I performance summary Q1 results* 37% 5% Sales Op. profit * Recasted for Acquisitions and Dispositions (GE Supply) Comments Experiencing some challenging industry dynamics but tailwinds offsetting headwinds Continuing to invest in new products with focus on energy leadership Driving localization/growth in emerging markets Focused on minimizing inflation impact through pricing and cost-out On track to deliver double-digit performance through /GE - Consumer & Industrial /5/9/ /