GE Energy Meeting Global Demands Jim Suciu Vice President, Global Sales GE Energy Global trends Population Consumption Energy security Environment Create big challenges 2
And the challenges drive the technology High fuel prices require higher efficiency Energy security requires more diverse solutions More stringent environmental standards require lower emissions, increased use of renewables and nuclear 3 Global demand growth Russia s power shortage threatens growth Namibia could face electricity rations Power outage hits Kuwait City 4
Power generation landscape next 10 years Total capacity additions GW (2006 2015) E. Europe & FSU W. Europe N. America China Middle East / Africa India Latin America RO Asia 10 year avg annual cap adds (GW) Renewables Coal /Oil TOTAL 8 21 24 35 59 146 Source: GE Energy PG Marketing 5 Growing demand for renewables Renewable technology only 3% of electricity production today Solid double digit growth expanding global footprint 182 160 05 renewable installed capacity (GW) 72 2004 2005 Growth driven by wind and small hydro 37 32 20 15 2 World Europe Americas China India Asia MEA Source: REN21, Renewables 2005 Global Status Report, EER2006, BTM 2005 Marketbuzz- 06 & PGV Analysis. Excludes large hydro6
Coal is still a primary energy source Recoverable coal reserves (million short tons) 279.5 316.3 327.2 China 126.2 0.5 21.9 55.5 India 101.9 Middle East S & Central America Africa North America Europe & Eurasia Asia Pacific Source: EIA7 Meeting big challenges with big solutions Diverse Coal Oil Geothermal Solar + Efficient Efficiency Emissions Driving Cost of Electricity Down Affordable, reliable & environmentally responsible 8
Technology diversity is critical Cost for new build COE (cents/kwh) 6.8 6.6 7.8 Fuel O&M 4.2 Capital Coal Source: GE internal 9 Technology diversity is critical Cost for new build COE (cents/kwh) IGCC 6.8 LMS H System TM 6.6 FB Multi MW ESBWR 4.2 Proprietary GE solutions Coal Source: GE internal 10
Increasing investment New product investment New product launches 76 Products +3X 98 98 06 +10X 2 20 98 165+ 06 Combustion Aerodynamics Materials Controls 11 Technology excellence across the portfolio Solar Cleaner Coal 12
Technology excellence across the portfolio Volume back to 03 levels Growing demand across the globe 03: 50% Non US Solar Cleaner Coal 06: 90% Non US Investing heavily in services portfolio renewals and productivity Non US CS penetration ~90% 13 Technology excellence across the portfolio Solar Cleaner Coal Cleaner Coal Increasing License activity worldwide refinery & petrochemical focus Poland Center of Excellence driving technology in Europe 14
Technology excellence across the portfolio 06 orders: - $3B US - $1B ROW Solar improvement Cleaner Coal 88% - 97%+ Capacity commitments through 08 global reach 15 Technology excellence across the portfolio Solar Renewable energy consumption up by 60% by 2030 $1.6 trillion investment Cleaner Coal growing 4% annually Jenbacher growing 5x Growth regions North America, EU, India, China & Brazil 16
Technology excellence across the portfolio Part of the global GHG solution Aggressive new build targets >100 GW by 2025 Solar Cleaner Coal ESBWR design certification progressing with NRC 17 Global Infrastructure investments bring big opportunities for growth ($ in Billions) ~$19 Energy growth drivers Revenue $17 ~$3.0 ~13% Grow across the portfolio across the world Op Profit $2.7 Coal/IGCC and nuclear progress continuing but significant GT CC needs for next decade Strong demand for renewables continues revenue growth CS backlog $32B 05 06E NPI investment up 30% in 07 18