2008 Farnborough Airshow

Transcription

1 2008 GE Aviation July 15, 2008 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. GE job title/2 2

2 What s new since Paris 07 op profit up 15% 2Q 08 up 10% Tough fuel environment for customers GE engines provide fuel advantage GE and Snecma partnership renewed for the next lifecycle GEnx certified Boeing 787 certification in process for Boeing Systems meeting acquisition expectations positioning for growth F136 won FY 08 funding Selected on all three key advanced programs for next generation combat aircraft, transport aircraft, and medium helicopter Growth in Business & General Aviation Walter Engines acquisition GE job title/ annualized revenue portfolio Commercial engines Commercial engine services Military engines & services 07 Revenue b) $4.5 $6.8 $3.5 Systems Business & General Aviation Unison Engine Components 07 Revenue a) $2.2 $0.4 $0.4 A leading aviation technology business (a- Systems & Unison Engine Components estimated total year 2007 revenue (b- Includes GE s 50% of CFMI & EA CFMI is a 50/50 JV between GE and Snecma EA is a 50/50 JV GE and Pratt & Whitney GE job title/4 4

3 Aviation ($ in billions) Revenue Segment profit $11.8 $2.5 $13.0 $2.8 $16.8 $ CAGR +19% +13% 08 business overview Commercial engines ~2,250 a) deliveries in 08 +9% ~23K b) engine installed base 11% spare parts growth through 1H 08 Military engines 45% unit & 4% spares growth in 08 Key programs on new & long term applications Systems 6% revenue growth in 08 Delivering on deal model Great business model (a- ~1, deliveries CFM, ~40 08 deliveries EA (b- ~14k of 08 installed base CFM, ~30 of 08 installed base EA CFMI is a 50/50 JV between GE and Snecma EA is a 50/50 JV between GE and Pratt & Whitney GE job title/5 5 Commercial engine volume Yearly shipments (units) 2,250 GP7000 GE90/CF6 2,765 GP7000 GE90/GEnx/ CF6 CF34 9,400 GP7000 GE90/GEnx/ CF6 CF34 23,000 GE90/CF6 CF34 Wide body Regional 1,477 GE90/CF6 CF34 CF34 CFM56 CFM56 CFM56 CFM56 Single aisle CFM E 2011F CFM56 shipments of ~769 in 05, ~1,350 in 08 & ~1,400 in 11 CFM56 backlog of ~6K & ~14K installed base CFMI is a JV between GE and Snecma EA shipments of 40 in 08 & ~70 in 11 EA backlog of 312 EA is a JV between GE and Pratt & Whitney Backlog Installed base Installed base enables service growth GE job title/6 6

4 Growth in commercial services Annual departures (millions) 35 Commercial CSA backlog $80B % $52B Extensions & new % Current base E 2011F 2Q F 40% coverage 47% Source ACAS data and GE Analysis CFMI is a 50/50 JV between GE and Snecma GE job title/7 7 GE engines fuel efficiency advantage Relative to competitor engine applications* GE advantage Delta block fuel (%) (6) (5) (4) (3) (2) (1) 0 Aircraft company data (1.4) (1.2) (1.3) (1.0) A A (5.2) ER (1.5) (2.0) (0.2) (3.2) (2.4) / ER (5k nm) Aircraft company assessment (1.0) (0.8) ,000 nm unless stated GE job title/8 8

5 World fleet fuel efficiency Classification Aircraft types Global aircraft GE & CFM aircraft Retirement candidates Redeployment candidates Best-in-class A300 BAe146 DC-8/-9/-10 Fokker L-1011 MD-80 Russian 707/727/737JT 747-1/-2/-3 A /A310 A320 old A340 MD-11 MD pax & below RJ classics A320 new A330 A380 CRJ-700/-900/-1000 E-Jet MD-11F 737NG F 777 4,101 21% world fleet 7,205 38% world fleet 7,963 41% world fleet ,238 2,269 1,969 5,675 4,142 1,533 21% world fleet Limited exposure to retirement candidates CFMI is a 50/50 JV between GE and Snecma Source: IATA, GE analysis GE job title/9 9 GEnx program status GEnx-1B for Boeing 787 Certified March 31 st, rd flight test campaign in process GEnx-2B for Boeing Engine type certification 2Q 09 Entry into service September 2009 GE job title/10 10

6 GEnx video 11 GE job Aviation title/11 Farnborough 7/14/2008 Airshow 11 Engine Alliance powered Airbus A380 Service at Emirates August 1 st, 2008 Dubai to New York (JFK) Dubai to Chicago (ORD) Dubai to San Francisco (SFO) Impressive results Best fuel burn engine on A380 Over 350 engines ordered to date EA is a 50/50 JV between GE and Pratt & Whitney GE job title/12 12

7 Winning with customer s priorities US Army rotorcraft ops in Iraq Thousand flight hours/month % '03 '08 ~70% of flying hours on GE engines 08 turboshaft shipments up ~40% Ops & maintenance costs up 2x in 10 yrs... headwind to fleet recapitalization Customer working to upgrade combat capability on select programs C5-M engine replacement program F110 SLEP (service life extension program) F404 SLEP (service life extension program) TF34 PUP (propulsion upgrade program) Winning international programs Australian Air Force F414 powering F/A-18E/F Royal Saudi Air Force F110 powering F-15S Singapore Air Force F110 powering F-15SG Turkish Air Force F110 powering F-16E/F GE well-positioned to support operational requirements GE job title/13 13 Key military development programs F136 GE38 CH-53K First flight 4Q 11 Critical design review completed 1Q 08 First engine to test scheduled for 4Q 08 Up to 5,000 aircraft potential Most modern technology engine in its class 10%-20% lower fuel consumption 50%-80% life cycle cost advantage More power for growth platforms Critical Design Review FETT F136 First F136 1 st flight deliveries GE job title/14 14

8 Advanced military programs USAF ADVENT (Advanced Versatile Engine Technology) HEETE (Highly Efficient Embedded Turbine Engine) AATE (Advanced Affordable Turbine Engine) Next generation fighter / bomber Next generation tanker / transport Next generation attack / utility helicopter Multi-mission flexibility & efficient supersonic flight 25% improved fuel burn over current fleet 67% increase in shaft horse power 25% improved fuel burn GE job title/15 15 Systems business overview ($ in billions) Providing civil and military aviation systems solutions throughout the world ~16K products more than 500 customers for over 400 platforms Global footprint 6 countries 24 main locations Realizing synergy savings ~700 headcount out 7 sites restructured Positioning for growth A380 Civil B787 F/A 18 Military Euro fighter F35 G650 B747-8 C130J $ Revenue a) $1.2 V22 (a- Systems estimated total year 2007 revenue GE job title/16 16

9 Systems products overview ($ in millions) Digital Electrical Power Mechanical Offerings 07 Information systems ~$130 Displays ~$120 Flight management ~$100 Platform computing ~$90 Mission management ~$90 Offerings 07 Distribution & management ~$80 Control & conversion ~$60 Generators & starter/generator ~$50 Offerings 07 Actuation ~$270 Aero-structures ~$260 Landing gear ~$170 Propellers ~$80 Mission systems ~$40 Customers BAE Systems Airbus Boeing Lockheed Martin Customers Boeing Lockheed Martin Bell / Boeing Northrop Grumman Customers Boeing Airbus Embraer BAE Systems Lockheed Martin Raytheon Applications Applications Applications B787 A320 Eurofigher B777 C-130J C-17 A380 B737 JSF Others: B777, B737, F-16, F-22, P-8A, Hawk, F/A-18E/F, C-130J & AMP Others: F/A-18E/F, F-35, V-22, AH-64D Others: B787, A320, Hawk, KC-767 Global Tanker GE job title/17 17 Business & General Aviation sector ($ in billions) Sector overview Product sales $ F CAGR +9% GE products $16 $ F structures high lift systems landing gear power distribution flight control actuation wing structures Source: GAMA, industry sources engine nacelle integrated avionics displays Record 07 business jet deliveries 1,138 ~$19B value International >50% orders Growth through differentiated products Engines Systems Outstanding service & support GE job title/18 18

10 Business & General Aviation products Aviation Systems GE and Honda technology M601 economical and Technology integration Propulsion systems robust engine Electric power Designed to achieve superior fuel burn performance Avionics Utility aircraft and retrofits Health monitoring Solutions for over 20 platforms HondaJet Spectrum S-40 Let L410 KingAir C90 GE job title/19 July 15th, Announced at Farnborough ecore Scalable design state of the art ecore technology Multiple applications Narrow-bodies Architecture options Advanced turbofan Regional jets Thrust range 30K or 10K Open rotor Business aircraft GE job title/20 July 15th,

11 Announced at Farnborough CFMI is a 50/50 JV between GE and Snecma GE job title/21 21 Announced at Farnborough CFMI is a 50/50 JV between GE and Snecma GE job title/22 22

12 Aviation summary Strong performance in 07 technology investments differentiates business for 08+ Unprecedented commercial engine volume driving long term service revenue Engine entry into service on 4 new commercial applications by 10 Military winning in a tough environment developing next generation products Systems delivering synergies positioned for civil and military growth Stronger focus on Business & General Aviation Partnerships & portfolio positioned for growth GE job title/ GE Aviation July 15, 2008