General Electric Co Annual Shareholders Meeting on April 25

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EVENT DATE/TIME: APRIL 25, 2018 / 2:00PM GMT

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

CORPORATE PARTICIPANTS Jason Oliver John L. Flannery General Electric Company - Chairman & CEO

CONFERENCE CALL PARTICIPANTS Craig Williams David Almasi Dennis Rocheleau Janet Gray John Huber Kevin Mahar Martin Harangozo Patricia Zerega Ron Flowers William Freeda Michael Barbera Christine Gilband Tom Bobrowicz Scott Slawson Linda Hoover H. Alan Young David Bjorkman Craig Kroll Jack Richards Paul Reinmann Thomas Hattier John Betchkal Melody Jackson Mike Freido Diana Driver Martin Donnellon Hal Waters

PRESENTATION John L. Flannery - General Electric Company - Chairman & CEO

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Good morning, everyone. Thanks so much for coming. On behalf of the -- thank you. Thanks, again, for coming. This is an amazing facility. I hope you got a chance to see that. I just like to say on behalf of the board and the management team, I'm pleased to welcome you to the 2018 Annual Meeting of GE Shareowners. I'm John Flannery, the Chairman and CEO. I want to thank you for -- and I hope you got a chance to see this incredible facility. This is really the future of manufacturing in many ways. We're inventing a whole new business for ourselves in additive manufacturing and how we use it in the company. It's more commonly known as 3D printing.

I'd like to start first by introducing the GE Board of Directors who're with us here today. And I'll ask the directors to stand briefly as I introduce them so you can see who they are. So Sébastien Bazin, Chairman and CEO of AccorHotels, director since 2016; Geoff Beattie, CEO of Generation Capital, a director since 2009, Geoff is the Chairman of our Audit Committee; Jack Brennan, Chairman Emeritus of Vanguard, a director since 2012, Jack's our lead director and Chair of the Management Development and Compensation Committee; Frank D'Souza is CEO of Cognizant Technology Solutions, a director since 2013; Ed Garden is the Chief Investment Officer and Co-Founder of Trian Fund Management, Ed's been a director since 2017; Risa Lavizzo-Mourey, Former President and CEO of the Robert Wood Johnson Foundation, a director since 2017, and Risa is the Chair of our Governance and Public Affairs Committee; Jim Mulva, CEO -- Former Chair and CEO of ConocoPhillips and a director since 2008, and Jim is the Chair of our Finance and Capital Allocation Committee. And then, lastly, Jim Tisch, President and CEO of Loews, and Jim's been a director since 2010.

We also have 3 new director nominees who will join the board after today's meeting. I'd like to introduce them as well, starting first with Larry Culp, who is the former President and CEO of Danaher; Tom Horton who's the former Chairman and CEO of American Airlines; and Leslie Seidman is the Former Chairman of the Financial Accounting Standards Board.

I'd also like to acknowledge 8 directors of ours who are not standing for reelection and thank them for their service: Andrea Jung, Shelly Lazarus, Susan Hockfield, Marijn Dekkers, Mary Schapiro, Jim Rohr, Peter Henry and Steve Mollenkopf. You'll note that we're nominating a much smaller board this year. It was really based on a decision made by the board after its own self-assessment and also a lot of input from our investors.

I'd like to report on the operations and give you just a few minutes of an update on the company. Before we talk more about the transformative work we're doing across GE, I'd like to address some of the questions that I know and thoughts that are probably on your mind today. Behind me, you can see the relevant numbers for 2017. But beyond the numbers, I know that the questions that are foremost on your mind in hindsight, what is our assessment of 2017? How are we holding people accountable? What are we going to do to fix the underlying issues and position GE's business for success in the years ahead. And I just want to assure you, I've spent countless hours asking myself these same questions. This -- 2017 has been immensely disappointing to those of us on the board, to the GE leadership team, to our employees across the business. And I know it has been very much so for all of you in this room.

And I'd start first with just a quick assessment of 2017 as we move forward, I think, just a moment on that. Well, a majority of our business has really had a very good year in 2017, but the Power and the Oil & Gas markets were in difficult cycles for us. Our operating rigor and execution should have been better. And in the end, we were slow to recognize some of the market developments in our Power business, in particular. The net effect in the end was a substantial drop in our earnings and the cash flow with the company. And we also had to take a large charge in a runoff insurance business in GE Capital.

So as a result of those developments, we had to reduce the dividend of the company, and we've made significant costs and job reductions across all of the businesses, in general. I can't underscore in the role I'm in how tough those decisions are and really how seriously we take them, as a management team, as a board. We're keenly aware of the pain that our performance has caused and the dividend cut has caused with investors, with retirees, with families. We know how much you rely on this, and these were decisions taken really with extreme deliberation.

At the end of the day, as we look at it, for the company to succeed in the long run, we have to make sure that we have a competitive cost position, that our businesses are positioned competitively and that we have a capital allocation model that's balanced in light of all the factors. So that's a look at 2017.

Secondly, it's how we held people accountable. That's the natural question to come up in these circumstances. I'd say we've made important changes at all levels of the company, really to hold our teams accountable to all of you for the performance. And I'd start at every level. At the board level, we've reduced the size of the board, as I mentioned earlier. We've added new members with key background and experience. We've realigned

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting our committee oversight. We created a new Finance and Capital Allocation Committee, really to help focus on how we're investing across the company, where the money is going, how we drive returns for shareholders. So substantial changes at the board level. We also made very substantial changes in the senior leadership of the company, both at the GE level, at my level, and also at the -- inside the GE Power business. The senior leaders of the company directly felt the effect of our performance in 2017 in their wallets in the form of no bonuses and -- as we should have. That's what we deserved for 2017.

I think, moving forward, which is most important and most on my mind is how do we fix the businesses, improve the performance and move forward with a plan to have them flourish. The most impactful thing we can do right now is just that. How do we make GE simpler and stronger and move ahead? And I assure you, we'll not let up on this until the job is completed here. I'll walk through more in a minute a little bit of detail on that. But first of all, I just want to come back is the philosophy. I strongly, strongly feel we have very, very good businesses that need to be the center of gravity of the company going forward. So the way we're going to run the company really built around the business strength. We're making a lot of our resourcing and our portfolio decisions to make sure that those businesses can lead and flourish in the industries that they're in. We're dramatically reducing, and you saw this in some of our numbers, our structural costs, increasing our visibility, executing on cash, running the company for cash. And I'd say, importantly, to our team, making the culture more open, more transparent, more connected amongst the team. So I'm confident that these changes in the long term are going to help the performance of the company substantially.

It's a lot of change. Change is not easy in any organization, in a large organization. We have a 126-year history, but we've been through this before. We understand how to evolve when we need to, and that's really what you're seeing in the company right now. So I'm confident, lot of heavy lifting going on right now, but the company is going to be stronger as we come out of this phase. And I'd really, especially, like to just thank our employees, our customers and our shareowners and our retirees for supporting the company during this time period. It's deeply felt and appreciated.

We take our responsibility to all of you very seriously. And really, our focus in 2018 is to earn back your trust in our performance on your behalf.

So let me walk you through in a little more detail what we're doing to build a stronger company and really focus on the businesses for the future. I've mentioned first, just running the company in a different way, in a way that we think we can get better results. So we're constantly assessing what our strategy is inside the business units. We're in the middle of a very detailed 3-year forward look at the businesses and their strategic positioning, much more, I'd say, detail and rigor on what's going into the markets, what's our position, what's our competitive capability and really we'll be presenting that to the board as we complete, but a deep strategic look at the businesses so we'd know where we want to head in each one of those. We're continuing to operate the Power business in a much leaner way. Russell Stokes is here with us today. A lot of progress on that. We'll continue to update you on that in 2018. Big reductions in structure. Big reductions in manufacturing footprint. These are ultimately going to convert into better cash conversion and better cash flow in the business. And really expanding the product and service margins. We know there's a lot of opportunity for us to do that, especially in our installed base. This is a business that produces 1/3 of the world's electricity. There is a lot of room for us to improve the performance in that business.

I'd say -- we had our first quarter earnings release on Friday. We're already seeing some, what we call, green shoots in that report last week, including in the Power business, significant reductions in structural costs and a lot of improvement in our ability to see our installed base and get more revenue and margin out of our installed base. So Power is in a tough time, but still fundamentally a very strong franchise built on high tech industry. It leads the industry from a technology perspective. And there is a big shift going on in this industry, really from a traditional centralized model to a decentralized model, decarbonized model and digital distribution of electricity. And we've got a lot of tools and weapons to play in that. So good operating improvement overall and, especially, in the Power business is what we expect in 2018.

Next section, leadership is always a significant topic to work on. We've got a number of new leaders in place, and those leaders are operating with very different and new incentive structures. In the first quarter, we filled a number of key leadership positions, appointing a new General Counsel. You'll meet Mike Holston in a moment here. New leaders in Power, in services, in supply chain, in the main gas power product system. So we also have a new compensation system in place. You've seen us talk about this maybe in a number of other venues. But for the top 4,000 employees, got a system that we think gets much, much better alignment between the management and the investors. So it's centered much less on cash compensation, much more on stock performance compensation. And it's a simple, quantifiable basis, where there's really 2 metrics, cash and earnings per share. So I think we've got a management team that's changing and a management framework and compensation framework that's very consistent with what your interest would be.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

And then lastly I'd say, we're getting back to a back-to-basics approach just on running the business more efficiently. I went through this on last Friday's earnings call. I'm personally going to lead a development of -- and implementation of new GE operating system, built really on core principles around Lean, on Agile, on Six Sigma, things that we've had good strength on in the past, we think we can leverage again and just making sure that it's a mindset of continuous improvement. Every day, every week, every quarter, we get a little bit better in things like our operating performance, our employees in training, our customer experience. So we're going to be much more rigorous in every aspect, and in particular on our talent management and making sure that employees are evaluated in the right way, groomed in the right way, developed in the right way and that you'll reap the dividends of that.

We're going to apply that at the corporate level, which is now in Boston, but we also expect to apply this in the large, what we call, Tier 1 business levels as well, our Aviation business, Power, Healthcare, et cetera, the big ones. And we're very confident this is going to have a twin benefit that is going to yield substantial incremental cost savings above what we've been working with so far. And most importantly, I think just a simpler, leaner, cleaner, business-centric, high-performance company. So I'm quite excited about what we can do in some very basic elements here.

If you move to the right side of the page, I'll just go through this, what we're doing on portfolio positioning. So last fall, we announced we'd start narrowing the focus of the company really to 3 key segments where we thought we have the most effect, that's our Power business, our Aviation business, our Healthcare business. And we also spoke of disposing of about $20 billion of assets outside of that realm really over the next 1 to 2 years. We're making progress on that target. There is discussions underway on all those assets and also announced transactions in Industrial Solutions and value-based care. And so we expect progress to continue there and have proceeds at the company level, in 2018, of about $5 billion to $10 billion. Additionally, earlier this year, we laid out a framework to reduce the assets of GE Capital by about $15 billion over the next 2 years. GE Capital's assets dropped about $2 billion in the first quarter. Some of that's seasonal but also included a sale of a portfolio for about $0.5 billion. So we're on the right track there. And then, we continue to review and evolve our thought process regarding the best structure and the structures for the company. As I mentioned earlier, the main way I'm thinking about this is really, run -- these are great franchises, run them extremely well back to basics. And then we think in a certain way like, what is the best way for these businesses to flourish 5, 10, 20, 40 years from now? What's the best environment for them to do that? So I'd say, in sum, that we're moving, I've been about 9 months in role, speed, purpose on how we improve our operations, how we deliver for the customers, for our employees. And when we're doing those things -- 2 things, we know we'll deliver for investors. We have a lot to work on. But when you look around here and the quality of the businesses, we have a lot to work with. So I'm confident. I have tremendous belief in the company. I've been here almost 31 years. When I see the work we do around the world, when I see our amazing employees, dedicated employees, I'm highly confident in the future of the -- our businesses and the company. So I want to take just a few minutes longer to walk through the strengths of a couple of examples of our franchises and really the technology that fuels them. At the end of the day, this is the bedrock of most of our businesses.

Company leads, really if you go across our portfolio, transformation with transformational technology. It drives productivity, it improves quality of life all around the world. So as I said early, today 1/3 of the world's power comes from GE installed base. Every 2 seconds, an aircraft takes off under GE engine power. The Healthcare business has the largest installed base in the world. These are very formidable assets. And our teams, I think, taking that technology and that installed base, they really dedicate themselves day in, day out around customer outcome. What is the customer looking for? They're looking for cleaner energy, cheaper energy, more flights per day, more precise diagnoses, better treatment for and clinical outcomes in the Healthcare business, that's what customers are looking for. So when I say we have a lot to work with, you look at the underlying franchise. I'm talking about the strength of those businesses, the purpose of those businesses, the mission of those businesses. And really, the technological dominance of those businesses -- business units.

And I want to just give you 2 quick examples of that: LEAP and the 9X engine. So we're leading in aviation in a big way with CFM's LEAP engine. You can see one here in the back today. I hope you got a chance to see it on the way in, if not on the way out. I defy anyone to tell me that, that engine is not a thing of great beauty, congratulations to the Aviation team, but it's also the best-in-class engine by far in terms of utilization, in terms of the mission, in terms of acoustics. We have 14,000 orders for those engines already, and that business -- so that business line really just getting going. The connection to this facility and the LEAP engine, it includes 3D printed fuel nozzles and other parts that are made from ceramic composite. So this has been technology invention and innovation and investment in this business. And those things allow lower weight, higher performance, 15% more fuel-efficient this engine than its predecessor engine that we had in CFM. This is a huge, huge difference in the aviation industry. Still about 20% of the cost of an airline is the fuel, so getting a 15% efficiency bump is tremendous. We're looking forward to 2020 and beyond where we'll have the GE9X engine. We're going to deliver world-class reliability and performance compared to peers. It's a massive engine

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting that's going to be powering Boeing's next-generation 777x passenger jet. It also is going to feature 3D printed parts, new ceramic composite. So same effect will happen here, better performance, lower weight, better fuel efficiency, so tremendous performance there.

Energy Reservoir, GE's Energy Reservoir. The ability to store power at scale is probably the most disruptive force in the energy business today. This is a rapidly transforming industry, and storage is a key pacer of how that will unfold. Our Reservoir solution, which we launched in the last couple of months, provides very flexible, very modular energy storage. The challenge has always been scale. This is a grid scale battery, and it provides a customized solution really, allowing customers to manage any type of energy output, whether it's from their wind farm, thermal, solar. So it has a broad application with our customers. And just as you look at one of these for the nonscientists amongst us, which would include me, each one of these is enough to power about 120 homes for a day, recharge a typical electric car about 50 times. So you can stack these together and get a broader solution, if that's what you need. So tremendous advancement in storage, and GE is a leader in that.

On the Healthcare side, the Pristina is a product I had a good chance to witness when I was in this business in the last 3 years. To get at this product development, we partnered with radiologists, technologists, but most importantly, with patients, to create a 3D mammography experience that it's really designed to deliver much, much superior accuracy for the detection of breast cancer. And then one of the big challenges here is getting screening accomplished. About 40% of the women in Europe, about 30% of the women in U.S. don't go for screening because afraid of the examination, this is the quotes we get back, afraid of the pain they might feel, afraid of the results, afraid of getting cancer. So this is a big thing for us to overcome with our customers and patients. And really to help reduce the fear and the uncertainty that comes with mammography screening, a team in GE Healthcare listened deeply to the customers, used those insights really to shape the product, the design of the product and ultimately what the overall patients' experience was. And it's really, the feedback on this has been tremendous in terms of its clinical performance but also the patients' experience. And the net effect is obviously more people getting screened, more people understanding their health conditions and better outcomes for the patients.

Our location for this meeting today, as I mentioned early, direct nod to our thoughts on advanced manufacturing. Teams that work in this facility and for GE Additive around the world, they're really on the frontline of the innovation at GE. And not only creating more advanced designs, lighter, less expensive, fewer parts, but they're really creating highly skilled jobs for the future. So we do a lot of partnering here and in other places with universities, with trade schools and local organizations in the community. So this is going to be a big source of job growth and skilled job growth now. So I'd like to pass off to our Additive business leader, Jason Oliver. I stalked Jason for a month to get him to join the company. We're very excited to have him here. And I'd like to turn it off -- over to Jason Oliver. And I'll come back to wrap up.

Jason Oliver Hello. My name is Jason Oliver. I lead the GE Additive business. And I want to welcome, everyone, to our Customer Experience Center here in Pittsburgh. This site opened in April of 2016 and to serve as an enabler to all of the GE businesses, helping them to accelerate the adoption of additive manufacturing and 3D printing. In May 2017, we transitioned the facility to the new GE Additive business, which is now more than 1,000 employees strong. The facility still serves as a key support to GE businesses, but we've now expanded its focus to help our external customers as well. We host at this facility as many as 10 customer visits a week. We also do training sessions and allow them to view production.

As you can see, it's a big facility. It's over 125,000 square feet. We run 6 different types of additive manufacturing technology. We have more than 25 different printing machines and a variety of postprocessing equipment and testing equipment. It really is a world-class facility, and we're glad you get to see it firsthand here today. For those that might not be aware, additive manufacturing and 3D printing is changing the way companies make products and the way they do business. It's already disrupting industries like aerospace, medical, automotive and even energy. There are amazing opportunities to design new products using additives, with benefits including lower cost, lighter and stronger products, product performance improvements, more functionality, longer life and increased durability. The transformational benefit of additive manufacturing allows customers to also achieve improvements in quality, efficiency, performance of manufacturing operations, decreases in inventory costs and increases in build cycles.

Hopefully, you saw some of the great examples of our Additive products as you toured the facility today. Like GE's new Catalyst prototype engine, Additive allowed our GE Aviation designers to combine 855 separate parts down to just 12 parts. So what, you might ask. Well, it allowed us to reduce weight on the engine by 5% and helped improve fuel burn, excuse me, by 20%. That's huge for an operator in aviation. We have some great

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting additive examples in our Power and Healthcare businesses too. And we have great customers in areas like medical, a company like Stryker that makes medical implants. In the dental industry as well, in Glidewell. And in aviation, in companies like Oerlikon. We're excited about what Additive is doing to improve GE and our customers. At GE Additive, We love being on the leading edge and being thought leaders in this space. We're so excited about our future where engineers and designers will be thinking about 3D in 3D. Thank you very much.

John L. Flannery - General Electric Company - Chairman & CEO I'd -- you can tell we're excited about this, and I think with good reason, if you get a chance to have a look around. So I'll just wrap up by saying back where we started. We're deeply focused on running every asset, every business that we have in the company in a much more productive and effective manner. So I'd say, in summary, it's a back to basics story on costs, on cash, on capital allocation, on people, on project execution. We just have to run and improve our performance. On the screen behind, you see our EPS and free cash flow guidance for the year, the same as we shared on our earnings call last week. Our Capital earnings will be a bit lower due to the portfolio actions that we're taking there. Aviation and Healthcare really well positioned to perform this year. And again, the Power markets, we expect to continue to be challenging, but that we can manage that business, with Russell and the team, in a very aggressive way. And they're doing a nice job doing that right now. We're targeting free cash flow of $6 billion to $7 billion for the year. And ultimately, at the end of the day, our objectives are to run the businesses well, make the portfolio stronger, simpler and continue to work as hard as we can to earn back your trust and to deliver for you. That's the purpose of the company and the team working at the company at the end of the day, is to produce that.

So I'd like to ask now Jamie Miller, who's our CFO, Jamie started in November shortly after I did, and Mike Holston, who joined us recently as our General Counsel, to come on stage, and we'll move forth to discuss the matters set out in the proxy statement.

Okay. So we'll start with the agenda Item #3, the voting matters. I'm advised that the meeting is properly convened, that we have a quorum and that the proposed resolutions presented in the proxy statement are filed as part of these proceedings. We've received proxies representing a majority of the outstanding shares eligible to vote, and the management proxy committee has voted those shares in accordance with the shareowner wishes.

The Independent Inspectors of Election are representatives of IVS Associates. And the inspectors have taken the oath of office required by law. If you've already voted by proxy, there is no need to vote by ballot today, unless you would like to change your vote. You'll find a ballot on your seat. We'll take up the election of directors and the management proposals first, and then there will be an opportunity for discussion of these topics. Then we'll move on to the shareowner proposals and have a chance to discuss those. There'll be time later in the meeting for general discussion of other matters. But first, we'll address the items that are in the proxy statement.

And the first of those is the election of directors. I place before the meeting to serve as directors for the coming year the 12 individuals whose backgrounds and qualifications are described in more detail in the proxy statement. The second matter is say-on-pay. The next item is a proposal to approve our named executives' compensation. Your Board of Directors recommends a vote for the approval of our named executives' compensation.

The next matter is the approval of GE International employee stock purchase plan. The next item is a request to approve an amended International employee stock purchase plan, which allows eligible employees outside the United States to purchase GE stock through payroll deductions and receive a matching contribution of shares from the company. This is an important program for encouraging non-U.S. employees to acquire an ownership interest of the company and provides an alignment with shareowners. Your Board of Directors recommends a vote for the proposal.

Last up for the management proposals is ratification of KPMG as independent auditors for 2018. We have with us today Lynne Doughtie, Chairman and CEO of KPMG; and Larry Bradley, KPMG's lead audit partner for the GE Audit. Your Board of Directors recommends a vote for the ratification of KPMG as independent auditors for 2018. Those are the management proposals. So if you'd like to speak about any of those specific proposals, you can go to one of the aisle microphones, and we can call in you from there. Please give your name when you speak. Microphone 1, please.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

William Freeda Good morning. Good morning, fellow shareowners. My name is Bill Freeda, and I am here today to vote my shares for our new Chairman and CEO, John Flannery. I do this because Chairman Flannery deserves our support and the opportunity to get this ship back on course. Achieving that will not be an easy task. Despite my support for Chairman Flannery, I will be voting against John Brennan, Geoff Beattie, Francisco D'Souza, James Mulva and James Tisch, all of whom have been members of our Board of Directors long enough for me to believe that they are part of the problem, not the solution. It is my opinion that the responsibility for our company's current precarious situation must be shared among the Board of Directors, Jeff Immelt, GE's other named executive during Mr. Immelt's tenure and Jack Welch. Why, you may ask, do I include Jack Welch? I have on good authority that Mr. Welch believed that one of the most important jobs a CEO has is to choose his successor. Need I say more. To be fair to Mr. Immelt, events occurred while he was Chairman and CEO that were beyond his control and had an adverse affect on our company and its stock price. 9/11 and the 2008 financial debacle were certainly not Jeff Immelt's fault. But GE was not the only corporation affected by these events, the difference was that Mr. Immelt did not have the answers to overcome these obstacles. In the hit Broadway Musical Sweet Charity, Gwen Verdon sang one of most familiar songs in the show, "If they could see me now". I would like to take the liberty of changing the title of that song to, "If they could see us now". The they I refer to are the people who founded, built and led our company as it became one of the most successful and admired corporations in this country's history. What would they think of what has transpired at GE in the last decade and half. Dividends being cut twice, stock prices plummeting, promises broken to tens of thousands of GE employees and retirees, millions of dollars in legal fees spent defending the morally indefensible act of terminating GE's Post-65 Retiree Healthcare without examining options to reduce that cost. And perhaps, the worst transgression of all, ignoring GE's long-admired integrity policy. Naively, many long-term loyal GE employees and retirees actually believed in that policy, even as Jeff Immelt and our Board of Directors made a mockery of it. And in the process, made retirees the scapegoats for GE's downward spiral. It wasn't retirees who have led GE to where we are today. I believe it was arrogance and a series of bad business decisions, perhaps caused by that arrogance. It is inexplicable to me how Mr. Immelt could preside over the termination of GE's Post-65 Retiree medical benefits, negatively impacting the lives of many in the GE family, some of whom have been retired for decades, while at the same time treating himself to travel on corporate -- luxury corporate jets and the most tone-deaf act of all requiring the presence of an empty backup corporate jet on some of his overseas trips.

In light of that revelation what the share owners should wonder were there other similar business abuses that occurred during Mr. Immelt's tenure. It is time for our Board of Directors which clearly has been AWOL to step-up and do the right thing. Moreover today, I'm asking our Board of Directors to order an independent audit to determine what other questionable practices may have been allowed to continue during Mr. Immelt's tenure as business as usual. Furthermore, in view of the fact that Mr. Immelt has left GE, I ask that his supplementary pension payments be suspended, that is the portion of his pension not paid by the GE Pension Trust, but directly by the shareowners, as well as any other benefits he may have been granted by our Board of Directors upon his exit until this audit is completed and a report submitted to shareowners.

Furthermore, I would ask the GE Board of Directors to investigate any and all legal options to claw back any of the bonuses, stock options or any other performance-related compensation that Mr. Immelt and the other named executives may have received. Fellow shareowners, it should be clear by now, those performance-related payments should never have been granted. We, the shareowners, many of us retirees, deserve transparency and honest answers. In conclusion, I would ask Mr. Flannery to form a volunteer retiree advisory council consisting of represented and non-represented retirees from various GE businesses. The purpose of this council would be to provide GE management and our Board of Directors with perspective and guidance as it pertains to GE retirees and the issues that affect their lives. Thank you.

John L. Flannery - General Electric Company - Chairman & CEO So Bill, thank you very much for your comments. As I said at the outset, we are disappointed in our performance in 2017. With respect to the board, we have made substantial changes. And I'm highly confident we have a -- the right board for the company going forward and the right mix of skills and people for the task at hand. And then, I'd say with respect to -- in general, the comments, it's important, I think, for all of us to distinguish between performance outcomes and misconduct. And I think this is a -- we have in the proxy what the company policy is with respect to this. This is something that the board would always be reviewing in its information were ever to -- and we'll always evaluate the information as it comes up. And if there was ever evidence of serious misconduct, the board will take the appropriate steps there. So that's a matter that we've laid out in the proxy. Microphone 2, please.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Ron Flowers Good morning, fellow stockholders. It's amazing, long time ago, we used to call stockholders, now we're called shareholders. But anyway, my name is Ron Flowers, President of the Retirees Association of General Electric. One year before you were born, Mr. Flannery, I walked into the General Electric Company in Erie, Pennsylvania, and started my career with this company. I spent 37 years here and couple observations. I agree with Bill about who you should vote for and who you shouldn't vote for, for this -- people this year. Back in the early 1970s, I was a union officer. General Electric came to us and they said, "We have this new modular locomotive that we want to build". And we have a good idea that we can really do this. Well, we set out to do it, and we had to change the locomotive processes, we had to change the buildings, we had to change everything. 10 years later, we saw the difference. In 1970, we had 15% of the locomotive market. 1980, we had 80% of the locomotive market. And we did the job, and we did the job by the workers going in to the shop every single day, making the product, buying a couple of shares. Making a product, buying a couple of shares. I call these prime shareholders because you get a double benefit out of us. Because the prime shareholders go in there everyday, and they make the product and they make a good product. We showed how good a product we made. And you benefit for it, and we bought a couple of shares of stock. Now this was $8 - $10 an hour. So we weren't buying a whole lot of stock every week. But over a period of time, it added up. Well, lo and behold, I look around and here's hundreds of thousands of prime shareholders that are now called GE retirees. And this is what I want to talk to the board about, because you have a responsibility to the company, and you've responsibility that made the foundation of this company that you're standing on.

We built the company. We put it where it is today. And I understand there was some bad decisions, but they weren't on locomotives. We're still #1 in the world. It wasn't on a lot of other products across the country because all over the country, people go into work and building the product and buying the stock, so then a couple years ago, the prime shareholders got the royal -- screw it. And some of these Board of Directors were in that decision, where they decided to take away the insurance for the retirees, the people that went into work every day and built the product and bought the stock. This one decision made by the board caused retirees to, all of a sudden, have to take up the $5,000 out of their pockets to pay for medical bills. My own father-in-law, in the first 4 months of that change, went from 500-and-some dollars a year to hitting the donut hole by March. And this isn't an unusual thing, the retirees and the people that worked with them on a continuing basis, we see it every single day. But the Board of Directors made that decision, and it was a terrible decision for the shareholders. Now we find out that this may not go past the end of this year or the middle of next year. I implore this board, this year, don't think financially. Think morally, also, because these are the people that did it for you over the years. These are your retirees. These are the prime shareholders. In your information that says the ultimate purpose for our work is the children in distant villages, who get access to electricity, better diagnosis and treatments in the moments that matter most. Your prime shareholders/retirees are spending more and more time in those moments that matter the most. And it's not something that is going to go away. Contrary to popular belief, we're all going to die. And before we die, if we're lucky, we die quick. If we're not lucky, we can be totally wiped out because of the medical cost. Mr. Board of Directors, Mr. Board of Directors, please think before you make a decision this time.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Ron, for your comments. And we are deeply appreciative of the prime shareholders and what they have contributed to the company. And we are always taken a number of factors into consideration. And thank you for comment. So we'll go back to microphone 1.

Dennis Rocheleau My name is Dennis Rocheleau. It's always a pleasure to speak after Bill Freeda and Ron Flowers. It makes me look mild-mannered. I want to applaud you, John Flannery, for reducing the size of the board. I think it was sensible and necessary. I welcome the new board members, impressed by their qualifications. I wish them well only -- not only for themselves, but for us. And I want to make a personal shout-out to departing Director, Lazarus. I didn't agree with the -- all that the Board did in the past. I probably won't agree with all that they do in the future. But Ms. Lazarus, throughout her tenure, was professional, personal and accessible. And I thank her for her service, and I wish her well. Secondly, I'll be speaking to the issue of KPMG. Amongst the many things, I am not a financial expert. I'd like to blame the whole mess on the accounting, the lack of reinsurance reserves, the subprime mortgage debacle, the restatement of earnings. I'd like blame it all on Bornstein, but I don't know that I can do that. And I would be delighted to hear from KPMG something about an equitable rebate of some portion of their fees, rather than a reflexive reappointment to their current status, but that's probably not going to happen. But I think that kind of dialogue and that kind of defense of their performance would be instructive to this audience.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

John L. Flannery - General Electric Company - Chairman & CEO Thank you for your remarks, Dennis. So now let's move to the shareowner proposals, 6 shareowner proposals that are listed in the agenda. To be sure that all the proponents have an opportunity to present their proposals today, we ask that the presenters focus their comments during this portion of the meeting to the proposals being presented. We'll have some time after that -- all the shareholder proposals have been presented for a discussion of these proposals. So I believe Pat Zerega is here today to present proposal number one.

Patricia Zerega Thank you, Mr. Chairman. Shareholders request our Board of Directors adopt a policy and amend our governing documents as necessary to require that the Chair of the Board of Directors, whenever possible, be an independent member of the board. The board would have discretion to phase in this policy for the next Chief Executive Officer transition implemented, so it does not violate any existing agreement. If the board determines that a Chair who was independent when selected is no longer independent, the board shall select a new chair who satisfies the requirements of the policy within a reasonable amount of time. Compliance with this policy is waived if no independent Director is available and willing to serve as Chair. This proposal requests that all necessary steps be taken to accomplish the above. Caterpillar is an example of a company that recently named an independent board Chairman after opposing a shareholder proposal for an independent board Chairman at its 2016 annual meeting. Wells Fargo also reversed itself and named an independent board Chairman in 2016. Please vote to enhance shareholder oversight of the GE Chief Executive Officer during this challenging time for GE on voting independent board Chairman proposal 1.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Pat. I believe that Martin Harangozo is here today to present proposal #2.

Martin Harangozo Again, my name is Martin Harangozo. I'm grateful to be a shareholder. I love this company, people and products. I have owned GE stock for most of my life. I have worked for General Electric more than 2 decades. My pension and savings are tied to this company's performance. I cannot think of a more honorable shareholder. Cumulative voting is recommended by Warren Buffett's mentor, the late Benjamin Graham. Nazi concentration camp survivor, Evelyn Davis, placed this proposal on our proxy many times in previous years. I am honored to stand on the shoulders of great minds and great people in presenting this cumulative voting proposal. Cumulative voting gives shareholders a larger voice in electing Directors. I share your optimism and faith for GE. There are wonderful turnaround situations. I give hope and guidance. My favorite is among the world's most valuable corporation, Apple Computer. I also like the Chrysler Corporation back in the '80s. Yet, given that many companies fail, and GE performed terrible in an economic paradise, I find the woodshed discussion in order. In more than 20 years of employment, I've seen the stock grow more than tenfold. I've seen the stock fall more than tenfold would change. My observation is GE transitioned from an honest company to a dishonest company. In 1990, my boss asked me to write down clear goals that he and I both signed. We worked together to achieve these goals. In 2010, my boss, Matthew Johnson, contradicted long established engineering procedures, bringing harm and risk to customers. Matthew Johnson lied under oath regarding objectives designed to reward shareholders. Appearances indicate Matthew Johnson counted income for the year 2010 for personnel assault until 2011, the identical practice that brought fines to General Electric from the Securities and Exchange Commission. I have his e-mail right here in my hand. When I questioned Matthew Johnson regarding his accounting, Matthew Johnson decided in a space of about a month to terminate me, 21 years, no notice, no package, no severance, the harshest retaliation possible. GE corporate executives processed my concerns and termination, such that they were printed on the Internet in violation of the spirit and letter agreement promising confidentiality and prohibiting retaliation. This is interesting for 2 reasons. First, GE proactively broke its promise of confidentiality and retaliation. Secondly, GE was warned that its accounting was not sustainable, as I called this accounting practice a Ponzi scheme. GE was warned 5 years ago the accounting was bad. You can read it on the Internet by googling my name. I have the website printed for those interested back on the table and on my person. At a 2013 meeting of shareholders, I brought the slogan "GE works for me debt free," Immelt laughed at this slogan. He no longer works for GE. And you expressed deep disappointment regarding the $15 billion charge. Apple Computer valuation exploded after GE -- Steve Jobs announced Apple was debt-free. Lee Iacocca at Chrysler would probably have paid off his debt to the government before it was due. Mr. Flannery, in your more than

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

30 years at GE, did you see anything at all that looks suspicious causing $0.5 trillion of valuation to disappear? You did not say anything at the shareholder meeting, as I would have heard it. What professional with integrity watches Americans lose over $0.5 trillion in valuation and not say anything at the shareholder meeting? It's simple and disturbing. You make less money if you do the right thing. I was woeful regarding nonsense accounting as early as 2004. My General Manager, Tom Lazzaro, asked if I was going to grab the microphone at the shareholder meeting. Seven years later, Matthew Johnson, who repeatedly violated written procedures and used dishonesty, relieved me of my employee responsibilities, bringing me up to work for General Electric as a shareowner. A critical characteristic of Apple and Chrysler is that they were turned around by a leader who was fired. As most companies eventually fail, a turnaround is best accomplished by someone who cannot help but to choose the right thing and has no desire for head nodding, (inaudible) or fear of termination. In summary, I recommend we can honestly remove debt and promote the profit. Shareowners, if you cannot embrace a shareowner who cried wolf and was spot on in terms of concern for financial strength, you deserve to lose your money, your dividends and your pensions. I believe that we can do better than this. To this end, I urge all shareowners to improve their voice in the company and vote for cumulative voting shareholder proposal #2.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Martin. Pat Zerega will present proposal #3.

Patricia Zerega Thank you. Mr. Chair. I am here to move proposal #3. Shareholders ask the Board of Directors to adopt a policy that the board will not use earnings per share or its variation, such as diluted or operating earnings per share or financial ratios, return on assets or net assets or equity, in determining a Senior Executive's incentive pay or eligibility for such pay, unless the board uses a number of outstanding shares on the beginning date of the performance period and excludes the effect of stock buyback that may have occurred between the date and the end of the performance period. This policy shall be implemented without violating existing contractual obligations in existence on the date this proposal is adopted. Shareholders support the use of performance metrics that align with Senior Executive pay with long-term sustainable growth. There is a concern that this alignment may not exist, however, if a company is using earnings per share or certain financial return ratios to calculate incentive pay at a time that the company is aggressively buying its own shares. Earnings per share and financial return ratios can be directly affected by the changes in a number of outstanding shares. Thus, a stock buyback means that earnings per share is calculated by dividing earnings or net earnings by a reduced number of outstanding shares, a process that can artificially boost earnings per share. A higher earnings per share may not reflect an actual improvement in performance. Please vote for proposal #3, deduct impact of stock buyback from executive pay.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Pat. And I believe David Almasi is here to present proposal #4.

David Almasi As you said, I am David Almasi. I'm the Vice President of the National Center for Public Policy Research. We are a shareholder. I want to explain to you our shareholder proposal entitled "Political Lobbying and Contributions." We had 2 goals in filing this proposal. The first goal was to block a shareholder proposal from the New York State Comptroller for making it on to the GE proxy statement. We succeeded in doing that. The second goal is to encourage the company to stand up for its values and pro-capitalist agenda in face of a tax from the U.S. -- or the New York State Comptroller and its cohorts. We didn't know for sure that the New York State Comptroller and the New York State Common Retirement Fund would be the specific group to file the anti-free speech proposal. But we had a good idea it would come from the anti-capitalist As You Sow network. Last year, you may remember, the Philadelphia Public Employees Retirement System filed a similar proposal with GE. So we filed a resolution this year with similar language, but with a pro-business message. Since the Securities and Exchange Commission has a first in time rule, and ours was in first, the New York State Comptroller's proposal won't see the light of day. GE investors should cheer that result. The New York State Comptroller, working with a broad network of liberal groups attempting to use American corporations to silence speech and to fund advocates to free enterprise, are doing these sorts of things. Following the U.S. Supreme Court's 2010 Citizens United decision, this network has filed hundreds of resolutions

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting complaining about the alleged lack of transparency and accountability in corporate lobbying and political activity. However, such groups never expressed concern about the billions of corporate dollars that go to fund liberal causes and politicians. Herein lies the hypocrisy of that proposal. This liberal network abhors corporate speech when it's perceived as skew to the political right. Yet, it remains silent when the speech supports leftist causes. The As You Sow network has tried to co-opt GE's investors into anti- free speech efforts in prior years, and its proposal received nearly 30% support. That's appallingly high. Many investors were perhaps misled by As You Sow's apparent calls for transparency and accountability. We hope investors will now understand this network's extremely partisan nature and deceptive tactics. This network complains that corporate relationship with groups, such as the U.S. Chamber of Commerce, the American Legislative Exchange Council, or ALEC, the Business Roundtable, the National Association of Manufacturers and other pro-business organizations expose companies such as GE to reputational risk. Considering that the network regularly smears these free market groups, it's a circular argument with no basis and facts. Groups such as The Chamber and ALEC promote a fair economic environment devoid of excessive government regulations and owner's corporate taxation. Such an environment would help and not harm General Electric. But that's just what the New York Comptroller and As You Sow want, to end American capitalism and destroy private enterprise. My fellow shareholders, in future years, and on other corporate proxy statements, if you see a proposal from the New York Comptroller or any other group and the As You Sow orbit that seems to beg for transparency and accountability, please vote those down, too.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, David. And Dennis Rocheleau presenting proposal #5. Dennis?

Dennis Rocheleau I believe my proposal speaks for itself. And I also believe that a company that claims to embrace transparency ought to tell us more about what is proved to be a massive misallocation of capital.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Dennis. And Pat Zerega with proposal #6.

Patricia Zerega Thank you. Here to present proposal #6, shareholders request that our Board of Directors undertake such steps as may be necessary to permit written consent by shareholders entitled to cast the minimum number of votes that would be necessary to authorize the action at a meeting, at which all shareholders entitled to vote were present and voting. This written consent is to be consistent with the applicable law and consistent with giving shareholders the fullest power to act by written consent consistent with applicable law. This includes shareholder's ability to initiate any topic for written consent consistent with applicable laws. The proposal topic run majorities that shareholders support the 13 major companies in a single year, including 67 support by both Allstate and Sprint. Hundreds of major companies enable shareholder action by written consent. Please vote for this best practice in corporate governance during this challenging time for GE.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Pat. We'll have time for a more general Q&A shortly. But first, are there any people who would like to discuss these specific proposals? Thank you. Agenda item 4 is balloting. So let's move on to the balloting. You'll find a ballot on your seat. If you have a ballot ready to turn in, please hold it up, and I'll ask the ushers to collect it.

Have all the ballots been collected? Ballots collected at this meeting will be reflected in the final vote results.

Okay. Agenda item 5 is the inspector's report. I believe the Inspectors of election are ready to announce the outcome of the voting. Let's go to the inspector's report. Michael Barbera of IVS Associates will be presenting the report of the inspectors. Mr. Barbera, do you have a report for us?

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Michael Barbera Mr. Chairman, the inspectors of election have completed an initial count of the votes cast at this meeting in person or by proxy. Proxies representing approximately 6,449,000,000 shares or 74.3% of the total shares eligible to vote were received. Other shares have been voted at this meeting by ballot or by proxy. On the basis of our initial count, the inspectors of election announce the following results.

The election of Directors, Directors each received at least 4.3 billion favorable votes, and all nominees have been elected.

Management proposals. The advisory approval of our named Executives' compensation: for 91.6% of shares voted; against, 8.4%.

Approval of the GE international employee stock purchase plan: for 97.5% of shares voted; against 2.5%.

The ratification of KPMG as independent auditor for 2018: for, 64.9% of shares voted; against, 31.5%.

The shareowners' proposals. Independent Chair: for, 41. 2% of shares voted; against, 58.8%.

Cumulative voting: for, 12.8% of shares voted; against, 87.2%.

Deduct impact of stock buybacks from Executive pay: for, 6.5% of shares voted; against, 93.5%.

Political lobbying and contributions: for, 21.2% of shares voted; against, 78.8%.

Buyback report: for 5.6% of shares voted; against, 94.4%.

Written consent: for 25.8% of shares voted ; against, 74.2%.

Mr. Chairman, this initial tally is subject to verification, and the final tabulation may reflect small changes in the vote I have announced. The final tabulation will be set forth in the formal report of the inspectors of election to the Secretary of the company, which will be made after the count has been verified. This concludes our report.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Mr. Barbera. That concludes the formal business of the meeting. And now, we'll move to agenda item #6 and open it up for Q&A. We've already heard some extensive comments, so we want to give other shareowners who have not spoken a chance. If you wish to speak, please come to one of the 2 microphones in the aisle. And when you're recognized, give your name and ask your question, please. Is there anyone who wishes to discuss an issue? Let's start with microphone #1, please.

Kevin Mahar Yes. Good morning, shareowners. My name is Kevin Mahar. I believe this is the 24th consecutive shareowners meeting that I have attended and spoken at as an advocate for GE retirees. I couldn't agree more than what Bill Freeda had brought forward to you as far as voting for the Board of Directors. I believe that the Board of Directors, when they made that horrible, despicable decision to take away the insurance from all the 65, couldn't have known what was really going to happen. Mr. Immelt had said, and I think it's an exact quote in 2015, that 8 out of 10 retirees understood this takeaway. And the company, in their lawsuit, is saying that there is no economic con to retirees. That is the biggest lie I have ever heard in my life. I don't know how offices of the board could make such kind of comparisons and lies about what happens. The average person at GE, who had insurance, increased their pay to keep the same kind of insurance by at least $100 a month. And not only that, then you have the drugs that you also had. Then you have to go through the OneExchange. One example, a gentlemen came down in my office and we signed him up for the OneExchange. It took 2 hours and 20 minutes, 2 hours of that person's time and efforts to try and sign up for a drug program. It is despicable. There

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting are things going on in the GE Helpline. Couple of people, Carol Jones from Lynn called to get the packet for her deceased husband who was also a GE retiree, okay? I stayed on the phone for 1.5 hours before we could find out what the status was of her packet for her death benefits. As it turned out, they hadn't sent them. She didn't receive them. There are things like that are happening. Will you -- one person have to get a bloody minute. She tried to get -- report her husband's death and she couldn't get anyone on the line at the helpline, okay? I'm making a suggestion on that, that you take something like the Social Security kind of method to inform people that you go call back. When you're reporting a death, that's stressful enough without having to do something like that. That's one suggestion. The other thing is, by the way, welcome to Boston, John. And I hope that we're able to go into the headquarters sometime with a retiree group, like Bill suggested, and really sit down and have some real dialogue. I know that you must be up to your rear end in alligators right now. But when you get a little chance, we'd like to see you in Lynn.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Kevin. We appreciate your service. And I certainly would look forward to getting together. And I'm sorry for that experience, as you outlined that. And I certainly will take that back to our teams and make sure that we address the issues that were raised. So thank you for comments. Microphone 2, please.

Christine Gilband My name is Christine Gilband. I'm a shareholder. And I am here representing not only my own investment, but the investment of my 97-year-old mother, Phyllis, who's been the biggest fan of GE for many, many, many years, as she invested and reinvested the dividends. But I'm here because of the stock price. And I don't think that your plan and the board you've addressed what caused the negative tipping point for the stock. I think the block and tackling that you're all doing on the business is what's made the company. But as it's clear, the value of the assets are greater than the stock. The issue isn't the value of assets. Well, it is when you're writing them off, but they're mostly written off, I hope, for now. But your problem is a credibility problem and perception. And I don't -- I would like to see more and have more done to address that issue. The investment community does not -- you don't have the credibility, and it shows in the stock price and the perception. And I think the new oxymoron will be KPMG and credibility issue in the same sentence. So I do hope that you can significantly address the stock issue quickly and the credibility and the perception of what's communicated. The business is a wonderful business, the model. It's a thrill to be here. I hope the rest of the world gets to see what's here. But in the meantime, as CFO and the board, and I think there should be accountability, and I didn't see that when it comes to measuring the stock price and the perception. Tomorrow's headlines will tell you whether or not this shareholder meeting whether you were able to be effective and communicating confidence not only in the business model, the block and tackling, that's what you're good at, that's what's there. The issue is the financial community doesn't believe and support or even have credibility that the restated numbers are the final ones. How many more restatements will there be? You have a lot of work to do. Good luck.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Christine. And as I said at the outset, we're disappointed in the performance. We're focused on improving the results. I'm highly confident that we can do that. And I think with respect to the credibility issue, I share your perspective and understand your perspective. And we think the best path forward for that is to improve the results of the company. And as I said at the outset, 2018 is our -- our mission is to rebuild our trust and confidence in all of you and, obviously. in the broader market, in general. And that will come really principally and, in some ways only, through improving the performance of the business, and that's what we're focused on. But thank you for your comments. Microphone #1.

Tom Bobrowicz My name is Tom Bobrowicz. I'm a 15-year employee of the General Electric plant in Erie, Pennsylvania, also a GE stockholder. I'm a third-generation employee of the GE plant in Erie, Pennsylvania. I'm here with other GE workers from Erie. We're here to bring a message to General Electric that GE needs to commit to our communities. GE workers are the economic stimulators of our communities. We buy houses and new cars and spend our income in the local communities. GE workers put money into our neighbors' pockets, and we feel good about that. Over the last several years, GE has slashed the workforce in Erie from 3,000 to 1,500. That's 1,500 people in the Erie community who are not stimulating the local economy the

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting way we used to or building profitable locomotives for General Electric. GE's recent history of poor decision making is hurting not only workers and communities, but also shareholders. Corporate leaders are making one bad move after another. The company's decisions wreaked havoc for the lives of GE workers and local economies. They don't make financial sense, and they threaten to lead us all over a cliff. GE's management is playing shell games with jobs. They're moving work out of existing profitable plants with skilled and experienced workforces that build quality products, while building new facilities -- excuse me, in right to work states to avoid unionization and hire inexperienced workers at lower rates of pay. They're exiting profitable businesses in order to chase technological trends and the latest management fads, repeating a history of buying at a premium and selling at rock bottom. GE workers, the communities where GE operates and the GE shareholders are all tied into this mess together. Getting GE on the right course starts with making -- with GE making a commitment to their employees and the communities in which they operate. GE signed the United Nations Global Compact, agreeing an abstract to meet fundamental responsibilities in the areas of human rights, labor rights, environmental stewardship and good governance. We're asking General Electric to make good on this promise by making the following commitments to our communities: commit to the local economies of the communities that have made GE successful; end mass layoffs and plant shutdowns; and honor your commitments to retirees; commit to respect workers' rights, end the practice of intimating workers who try to exercise their fundamental right to organize collectively; commit to environmental stewardship where GE has harmed the health of workers, community members and the environment; GE should offer lifetime medical monitoring at no cost to those persons exposed to PCBs and other toxic material and financial restitution to those communities. GE has, since its founding, been a conglomerate and the workers in diverse communities, like Erie Pennsylvania, Lynn, Massachusetts and Peterborough, Ontario have made diverse quality products at a healthy profit to the company. GE communities have proven that we can make GE a profitable company. It's time for GE to commit to our communities and return.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Tom. Microphone 2, please.

Craig Williams 70 seconds, and like I said, don't take this personally. My name is Craig Williams. I am here with another shareholder, my mother, Helen Williams, who, like my father, are both retirees -- they're both retirees of General Electric. Last position was at corporate headquarters in Manhattan. Between us, we own well over 14,000 shares of common. And we are here representing merely ourselves. I originally intended to use this brief opportunity to ask you a major issue, like your plan on recovering the Power division, what consequences of the CFM56 failure last week or the continuing confidence of OneExchange's role in retirees' health care or resuscitating the stock value, which we are all painfully aware, has been in the dumper. Instead, I am asking you about the weighty issue of why the process to attend this annual meeting is so difficult. I was hoping I would be the only one. The last couple of months has been a series of contradictory instructions mailed from EQ Shareholder Services and General Electric. One case in the same envelope, missing annual meeting correspondence, missing proxy statements, one attendance card with incorrect name. The other one express mailed to us last week still hasn't shown up and so on. During my office hours, I had to make about a half dozen phone calls all day along, a lot of time on hold, to try to correct such things. What is equally frustrating is, the last time I was at this annual meeting was 2 years ago, and I recall a similar set of occurrences. It has gotten no better. My only other experience attending this meeting was 30 years ago. It's a paper-based system. It worked just fine. My mother and I, like everyone else here I suppose, are alarmed at what's been happening to this company, our company. But if the current major problems, which did you a very good job explaining in how you're planning to address them, if those major bear -- problems bear any commonality with the trivial problems, like a struggle to attend an annual meeting, then our company is in deep, deep kimchi.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Craig. I appreciate you taking the time. And I apologize for that experience. And that, certainly, is something I'll have Mike -- and Mike and I will look into exact details of what's behind that and obviously correct that. So thank you for taking the time. Microphone 1, please.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Janet Gray My name is Janet Gray. I have worked in Erie for GE Transportation for 7 years as a salaried, nonexempt, UE618 employee. I also worked for drives, motors and generators, DM&G, in Erie from 1986 from 1992 in an exempt position. I grew up in Wesleyville, Pennsylvania, one of the small communities surrounding Erie. Most of my school friends' fathers worked for GE. Everybody wanted to work there. As a sophomore of Penn State Behrend studying management information systems, I was excited to get my foot in the door at GE. After graduating, I got a full-time position. I loved the work, I loved the people and I loved GE. I was even sent to Crotonville for the corporate entry leadership program and actually was able to meet Jack Welch. I well and truly had the GE meatballs stamped on my forehead. I even met my husband, who was a GE Australia employee while working at DM&G and moved to Australia in 1992 where I lived for 20 years. I continued to stay connected with my GE family even living abroad. My first introduction to GE transferring work was when drive systems was moved to Salem, Virginia in 1991. I know our community took a hit with that decision. In 1993, GE announced that DM&G would be transferring out of Erie altogether. Even living in Australia, I was crushed. Some of my old friends and coworkers left GE. Some transferred to other GE sites around the country. And some are lucky enough to transfer to GE Transportation in Erie. Some took early retirement and others just went on unemployment. No one could understand why this decision was made. DM&G was a profitable business, but obviously not profitable enough for corporate. As part of the move of drives, motors and generators, GE sent medium motors to Monterrey, Mexico and large motors to Peterborough, Ontario. Interestingly enough, GE recently announced it was closing the century-old Peterborough facility, shifting their work to France and other countries. This move is a direct result of obligations made during the Alstom acquisition. GE continuously plays a shell game with workers, shifting jobs from one country or location to another with no regard to the effect that it has on the communities it leaves in its wake. When I returned from Australia, I began working for GE Transportation as a union employee. Just 2 years after I returned to GE, the company announced the decision to transfer Evo Locomotives to Fort Worth, Texas site. In 2016, yet another intent to transfer work was received. I was directly involved in negotiating with the company then to save the UE 618 jobs. We produced the plant that could have saved more money and kept jobs in Erie, but GE wasn't interested. And the positions were transferred to India. In 2017 came the announcement that GE was going to transfer locomotive production from Erie altogether, dubbed the end of an era. For 81 years, the unionized workforce in Erie, PA worked tirelessly to make GE Transportation what it is today. The community that had been a strong support of GE has lost faith. I fight an internal struggle daily. I go from someone who has so much loyalty and faith and pride in this company, the best company in the world, to someone who despises their lack of loyalty to their employees and their communities. And it disgusts me how you're working to destroy the union workforce, the workforce who made the best locomotives in the world, the workforce who continues to return to work after being laid off time and time again due to the cyclical nature of the business and the workforce that continues to make profits quarter-after-quarter, even in the severe market turn down -- downturn, excuse me. It's time for General Electric to make a real commitment to their employees and the communities in which they operate, to commit to supporting local economies, respecting workers' rights and practicing environmental stewardship. That is why we are here to say, "GE, commit to our communities."

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Janet. Microphone 2.

John Huber My name is John Huber. My first wife, who passed away 8 years ago, was the granddaughter of William David Coolidge, who was at the research lab in the early 1900s. And therefore, my wife's family and, now me, have been shareholders of this company since, I think, 1905. While the company is experiencing a rough patch, it appears that the board and management are changing and adapting to accommodate the times. For example, in the first quarter conference call last week, and today, Mr. Flannery discussed the development of a new operating system as part of the effort to get the company back on track. Trying new ways to solve a problem is also the way GE's research lab has operated since it was founded in 1900. I recommend that the board and management put a priority on R&D in its turnaround plans. The research lab was instrumental in creating at least 2 of GE's current segments. Inventing the first workable x-ray tube was the basis for the Healthcare segment. And developing the jet engine was the basis for the Aviation segment. Through pure and applied science, the research lab continues to do what Thomas Edison said, "I find out what people need and then I proceed to invent it". That guiding principle continues to be the objective of the research lab, whether it's in Niskayuna or Bangalore, or here in Pennsylvania. As a long-term shareholder and father of 2 great grandchildren and 3 great-great-grandchildren of William David Coolidge, an inventor and director of the research lab and Vice President of the General Electric Company, I ask that the research lab be given

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting full support during this multi-year fix. It has rewarded customers, employees, shareholders and the public for over 100 years by addressing people's needs through new products and opening new markets. Properly supported, it will continue to do so in the future.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, John, And thanks for your reminder of the tremendous history of the company. Thank you. Microphone 1, please.

Scott Slawson I'm Scott Slawson. I represent the locomotive builders in Erie, Pennsylvania, local 506, the best locomotive builders in the world. I had no intention of speaking today, but just -- I figured I take the opportunity, while I'm here, and appreciate everything that you're doing for the company. In 1910, Thomas Edison made the decision to build locomotives in Erie, Pennsylvania and he said, "That's where I want my locomotives built." In it's hay day, that factory had almost 25,000 workers in it. Today, we're less than 3,000. A couple of my coworkers did come up and speak about commitments to the community, and these are things that we're very interested in, and we want commitments to our community. We want to be around it, and I'm proud to be a prime shareholder of this company. I've always taken a lot of pride. It's an amazing thing when you can look at your child and say, "I built that," especially with locomotives because they're the coolest things on the planet. So -- but that being said, the disheartening part of this conversation is the end of an era that Janet Gray spoke of. We are very proud of the locomotives we build. We want to continue to build those locomotives. And as you are well aware very shortly, we're not going to be GE employees in one form or fashion, and that's disheartening in itself. It's creating a lot of disruption in our factory, a lot of issues. On top of all that, the other disheartening piece of this is we're getting ready to hire a couple hundred brand-new, nonskilled employees in Fort Worth, Texas to engage in the commitments that GE has made with transportation. And we're going to pay to train them. We're going to go through all this process, and I still have 845 workers that are skilled, trained and ready to build locomotives for this company and the companies that want them from us out there that are unemployed. These are things that are very hard for me to deal with, and I would be remiss if I didn't ask you to consider moving some of that locomotive production back to Erie, and let's take current GE employees and let's bring them back to work and give them the respect they deserve.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Scott. Microphone 2, please.

Unidentified Shareholder Retiree and shareholders, I'm one of those people and I'm also from Lynn that makes jet engines. Practically everything that I heard this morning taken away everything I wanted to ask. So I'm only left with 2 questions, not statements but questions. One of them is, repatriation is going to have to come in this year, am I correct?

John L. Flannery - General Electric Company - Chairman & CEO Repatriation, your question?

Unidentified Shareholder Yes and...

John L. Flannery - General Electric Company - Chairman & CEO You're talking tax or...

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Unidentified Shareholder Tax repatriation. Also, the question would be if GE has a health department. A question goes from the -- about the -- when it's coming back to the United States later on this year. It's what are you going to do with those funds?

John L. Flannery - General Electric Company - Chairman & CEO So the -- GE is a global company. We've got investors and tax sort of implications to those all around the world, and those are always dynamic. So there's no specific or frankly significant amount of money coming back to the United States related to this and no specific investment plan. We always look, as I said earlier, at the best way we can allocate the capital of the company and the most productive way to invest that. And that's something that changes as markets change and our technology changes, and so we're really focused on allocating the capital and the cash resources of the company as best we can, and that's something we spend a lot of time with our Board of Directors with.

Unidentified Shareholder I really didn't understand what you said, but I hope you're saying you're going to put it back in the company and not necessarily in...

John L. Flannery - General Electric Company - Chairman & CEO Yes.

Unidentified Shareholder Okay. Back in Lynn, we were kind of an old industrial area with the aircraft, can use a lot of that money going back into some machinery, updating the whole areas. And from what I understand and know that we have asked corporate more than once, "Hey, we need new machinery. Or we need machinery that we have refurbished." I'd love to get some of those in there and with the employees to run them but then no -- that's about that. Now the industrial, we -- you'll have health care. You'll have a health department that will -- what do you do with that post?

John L. Flannery - General Electric Company - Chairman & CEO Are you talking about our Healthcare business?

Unidentified Shareholder Yes. My question is, we have [gone out] to OneExchange. And like Kevin said, going through that process -- and I'm one of them. It took over 2 hours. I was lucky it didn't take over 2.5 hours or 3 hours because he took the time to do it for me with a couple more people. My question is with the Healthcare division, why isn't they're ensuring -- assisting and ensuring all of these retirees? The question is -- the point is that we're like -- we're the new retirees from the baby boomers, which is a growing population. You guys can help insurance and waylaying the cost of health care by giving us a dividend -- not a dividend, a percentage of OneExchange or whatever company that is insuring us. That's my question.

John L. Flannery - General Electric Company - Chairman & CEO Thank you very much for your question. As I said and with respect to the earlier question, I've heard you loud and clear, and we will go back and investigate and address the issues that several of you have raised there and come back.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Unidentified Shareholder Okay. At OneExchange...

John L. Flannery - General Electric Company - Chairman & CEO I'd like to make sure that we have other people have a chance.

Unidentified Shareholder Okay. I just wanted to say that OneExchange is...

John L. Flannery - General Electric Company - Chairman & CEO I understand your comment. Microphone 1, please?

Linda Hoover I'm Linda Hoover out of Erie, Pennsylvania. My husband and I were third-generation employees of General Electric, and our daughter, who is the fourth generation, is currently employed at the Erie plant. I left employment to become a homemaker. My late husband, father and grandfather all had more than 40 years' service. My brother had more than 39 years' service, and he is currently a contractor out of Boston. When my late husband took early retirement during the exit meeting, he was told that he and I would retain medical benefits in his retirement. I have the documents. These were the same promises given to my grandfather and father at their exit conferences. The company's promises to them concluded upon the death of their respective spouses. The company promises to my late husband proved to be a lie. How can an employer, after a verbal and written agreement, redig on this agreement? Changes in anything affecting then current employees should have begun with the next people retiring and during each exit conference, not with those already retired. Any deviation from what was agreed upon between the retiree and their former employer should not happen. What a disservice that General Electric has perpetrated on retirees who gave most of their lives in service, which generated massive profits. My late husband was on a brand-name prescription, and he was notified that he would have to have a 3-month trial of a generic of this medication at a lower cost. He wasn't feeling the same while using this generic, and he never made it to his next doctor's appointment. How many other retirees died during their change from brand name to generic and now there is generic alternative. General Electric, with all the profits, failed these retirees. General Electric has failed their stockholders also. The extreme drop in the price of the stock and the declared dividend is a travesty. At one point, the only division in the black was the locomotive division located in Erie, and the company built a new plant in Texas. Anyone with common sense would determine that the division pulling its weight would be safe. Wrong. Decisions such as this bring into question as to the sound business sense of the Chairman and the board. How did the Chairman and the board justify their weighty compensation when the stockholders are being decimated? I, for one of your stockholders, rely on the dividends -- and I'm shaking, to supplement my stagnant retirement monies with my expenditures on the rise. You can tell I'm not a speaker. Compensation to the Chairman and the directors should be merit-based and only when these goals have been fully accomplished. But General Electric has failed the retirees, their employees and the stockholders. When are the Chairman and the Board of Directors going to hold themselves accountable for these failures? I thank you for listening.

John L. Flannery - General Electric Company - Chairman & CEO Thank you very much, Linda. Microphone 2, please?

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

H. Alan Young Mr. Flannery and other members of the board and my fellow shareholders, I want you to know that before I discuss my prepared remarks, which are brief and much briefer since other persons have spoken and covered those things, is that I was impressed by 2 things this morning. Number one, Mr. Flannery, you being there greeting GE shareholders, that must be a first and we appreciate that. Secondly, I was always offended in the past meetings when the directors were introduced and they marched up, sat down on the front row and all we saw was the backs of their heads. Well, we're making progress. We now see their profile. Maybe next year, we'll see them facing us, the owners, so that they can meet eye to eye and see what reactions that we have. GE, which was once the most preeminent corporation of the world, the bluest of blue chips, is now truly an embarrassment. And it's an embarrassment that you can read, it seems, like weekly. Last weekend, for example, on the front page of the Financial Times was a very disparaging article. And last Monday, The Wall Street Journal wrote -- also on the front page, wrote a very poignant profile of one of the retirees who put his money into GE stock, hoping that it would appreciate in value and now he's having trouble making ends meet. I referred in the past, and I think accurately, to the GE board as being overpaid, underperforming and compliant with the leadership with GE. I hope that has changed. I hope that the new members can ask very deep questions and significant ones. In the year 2000, I attended GE meeting in Richmond. That was a time, Mr. Flannery, you may remember, that GE was waiting a word from the European Union to see if the regulators would approve the purchase of Honeywell. It didn't work out that way. But at the close of business, that very day, GE closed at $54.42 and Honeywell closed at $55.39. Last Friday, GE closed at $14.54 and Honeywell closed at $150.57. Ms. Seidman, you may be interested in knowing that the CEO of Honeywell at that time was a year ahead of me at Colgate University, your alma mater. I recall we haven't been really treated with respect. For example, who will ever forget when Mr. Immelt was interviewed on television and asked whether or not he thought that the dividends would be reduced and he said no. It was only weeks later that the dividends were slashed by 68%, a real hardship to many people. But that was a real blow to everyone, not to be forthright with the shareholders. At the Orlando meeting, I remember in the prospectus there was a key employee who was given certain goals to reach. And if he met those goals, he would receive a bonus of $4 million. He didn't reach that goal, but guess what? They gave him $1 million anyway. It reminds me of the current trend of children receiving a trophy just to participate in an athletic contest, but this event was much more costly to GE. And I recall for years, I and others said, "Let's get rid of some of the noncore businesses," and I remember specifically saying, "What about NBC? Why you should we be held hostage to the vagaries of what the fall programming would be." Well, they finally did that, but it took years, years to do that. And I may say, Mr. Flannery, from what I read and assuming that what I'm reading is accurate, I think you are taking the position that we've got to get rid of these noncore enterprises and concentrate on the industrial, which really made GE what it is...

John L. Flannery - General Electric Company - Chairman & CEO Sorry, I'll just ask also we have a number of other people waiting to speak.

H. Alan Young Okay. The last one I just want to mention is the elephant in the room. By definition, no one wants to acknowledge the elephant in the room, which is over the years, GE now has 8.5 billion shares outstanding. Honeywell has about 735 million, and I think even IBM has less than 1 billion. That's a big pie to split among the shareholders. You're going to have to generate so much revenue, and I'm wondering in the form of dividend, I'm wondering if you have any plan of either repurchasing the stock or otherwise cutting it down so that we can at least participate in the profits as they generate. All I'm -- one last -- all I'm saying is we, shareholders, only wish for you to right a floundering ship and make GE the preeminent corporation that it once was.

John L. Flannery - General Electric Company - Chairman & CEO Thank you. And I would like to just address one part of your question. I think it's important for everyone in this room but also for our customers and our employees around the world with your -- with respect to the -- that GE is an embarrassment now. And we acknowledge, as I said at the outset, a very difficult year in 2017 and the need to improve the performance going forward, and that's clear to us. It's clear to everyone. I've been at the company for 31 years. It's been my life, and I'm still extremely proud of this company. The essence of the company did not change in the last 12 months, the integrity, the technology, the impact we have in 180 countries around the world on people's lives. It is a company that I'm deeply proud of, and we need to restore that. But I want all of you to be proud of the company and not lose heart in the cycle that we're in. And I especially

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting thank our employees who I know are managing that same issues. So I appreciate you bringing up that comment. And I really think it's important that we fix what we need to fix, but the core essence of the company remains and will shine again. So thank you. Next question.

Martin Donnellon My name is Martin Donnellon, and I'm a private shareholder, one of the few here, okay. My first question is to Mr. Garden, Ed Garden, Director. Why didn't he speak up for his shares -- shareholders in light of the situation of this company, the same with BlackRock and Vanguard?

John L. Flannery - General Electric Company - Chairman & CEO Martin, I'm here as the Chairman on behalf of the board to answer any questions with respect to...

Martin Donnellon In the past annual meetings, the Board of Directors always stood up and answered for themselves.

John L. Flannery - General Electric Company - Chairman & CEO Martin, I'm here as the Chairman of the Board, and I'll address the questions that you have in that context.

Martin Donnellon Okay, okay. Now what is the prognosis for the dividend?

John L. Flannery - General Electric Company - Chairman & CEO So as we've discussed as recently as last Friday and we've talked about it briefly this morning, which was given the events of 2017 and the impact of that on the business, we were forced to make a reduction in the dividend. As I said earlier, that was a decision that was a deep analysis of the situation and the prospects with full cognizance of the impact of dividends on all investors but especially retirees and others living on fixed incomes. And we came to the conclusion in the context of that situation that, that was necessary. We do not have any current plans to change that dividend, but it was something that was necessary first to do in 2017.

Martin Donnellon So when do you think the dividend will be increased? Give us some sort of time line.

John L. Flannery - General Electric Company - Chairman & CEO Martin, I'd -- we've answered where we are for now, and I really want to make sure that the other people have a chance to get up and ask their question.

Martin Donnellon Okay. By the way, Matt Cribbins, we spoke to, tried to get in touch with him many times. He's not responsive to any of us shareholders, Matt Cribbins.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Martin. Microphone 2, please?

David Bjorkman Mr. Flannery, my name is David Bjorkman. I work for 37 years of my working career at the General Electric Company at Lynn and Everett. I'd like to welcome the new members of the board and certainly hope that they do a much better job than their predecessors. My concern involves the state of the pensioners. And I want to tell you folks that contrary to what the General Electric lawyers have said, there is significant harm being done to your long-term retirees, all retirees, with the change in the health care process. Personally -- now $150, $200 a month might not seem like anything at all to folks that are taking in the incomes that you folks are taking yet. But $100 to $150 a month is a severe blow to me. I am very disappointed. I was very proud to work for the GE. I took them to have a high degree of integrity, and I put a lot of effort into the work that I did to make sure that I put out a quality product. I was injured a number of times as I sat at my GE career before the health and safety teams that are currently in place who are in place. There's a lot of my DNA sitting on General Electric engines in flight to this very day. And a promise was made to we, retirees, by the head of corporate HR, and that promise was that we would continue to receive subsidized health care until the end of our lives. That promise was broken, and I'm ashamed of the GE for breaking that promise. I'll tell you that the -- something that we're very much worried in also is that there's $1,000 supplement that is supplied to the GE retirees supposedly to take some of the pain out of taking away our subsidized health care. My current -- currently, the $1,000 that is allocated to us, mine runs out this month. For the rest of the year, I'm going to have to pull out of my limited resources what I need to cover my health care. And it's a big hurt and I want you to look at me and I want to tell you this is a big hurt to me. And it is a big hurt to all these other retirees that you have here. Now I'm very worried and it has been brought up that perhaps GE may decide to stop that supplement. I can't believe what I am going to do when that happens. I don't believe that, that supplement should be reduced or taken away. I think it should be increased, maybe doubled. That way, mayhap I'll make it to maybe half the year before the money runs out. A promise was made to us. That promise was broken. The very least that you can do is try to help us out by increasing that yearly supplement that is given to us. I hope that the GE does pull itself out of the hole that it's got itself into and once again becomes the vibrant, integrity backed, based company that it once was.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, David. Microphone 1, please?

Hal Waters My name is Hal Walters, also a retiree, and I came to make a comment for you, Mr. Flannery. You have a tough job. You have a -- you had a tough year. And I -- you asked to give me your trust. I think you asked for all of us here to give you your trust because you have to rebuild it. And I drove here to learn about what you're going to say and to start that trust process. What you told me was 3 things: You said you're going to rely on the strength of your business, the conglomerate of GE. You're going to rely on the strength, a basic simplicity, back to the basics. And then you're going to rely on the strength of your employees to bring back the GE that we know and love. My point is that this is exactly the same words that we've heard over and over again, and it does not resound anything innovative or new, sir. And I don't know if that's the basis to start the trust-building process again. So that is my comment to you for your consideration.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Hal. Microphone 2, please.

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

Craig Kroll My name is Craig Kroll. I'm a 20-year employee in Erie, Pennsylvania and I want to thank you guys for the chance to speak. And I'm really wishing you guys the best of luck because I've bought a lot of stock over the years and it's not doing very good. And if you guys are putting a chokehold on us in Erie and going to get rid of us, I'm really going to be needing that money. I mean, and -- I just -- I wish you guys would rethink that because every time you guys put us down, the employees there stand up. The management team does. We come back against all odds. We hit our numbers. We make you guys money. I can remember the '90s making profit to pay for all the fines of water and everybody else was getting from the EPA, and all of our profit went to pay for all the wrongdoings of everybody else over the years. So just in closing, I want to wish you guys the best of luck getting our stock price back up there and our dividends. And if you get rid of us, that's going to be your loss.

John L. Flannery - General Electric Company - Chairman & CEO Thanks, Craig. Thank you. Thanks for taking the time to come, Craig. Microphone 1, please?

Jack Richards Good -- it's not morning. It's afternoon. Good afternoon, Mr. Flannery, and welcome to Boston.

John L. Flannery - General Electric Company - Chairman & CEO Thank you.

Jack Richards And that's where I grew up, and that's where I worked at the GE in Lynn. And I retired after 34 years at the aircraft engine division. And I just wanted to let you know, especially the Board of Directors, that I decided to retire early because I had a lot of GE stock. And at that time, it was $60 a share. Now I've made my plans based on the fact it was $60 a share. But after I retired for approximately 4 years, the stock, the same GE stock, went down to $6 a share. So I had to make a lot of changes in my life. And one of the things that I don't hear talked about here at this meeting and I haven't heard it discussed at all, it is another major problem for me as a pensioner and for you as the Board of Directors. We are -- all the publicity that I read about especially in The Wall Street Journal this week, we are $22 billion in deficit on the pension fund. Now I would like to know, Mr. Flannery, what you are going to do about that $22 billion deficit. Am I going to still receive my pension? Now the rumors that I hear -- and I'd like to have you verify it, that you plan on turning our pension fund into an annuity. Is that true?

John L. Flannery - General Electric Company - Chairman & CEO So sir, with respect to the pension, there is a significant deficit now. Part of that's a function of interest rates and things that affect that calculation. Maintaining the integrity of the pension is a deep priority for us. We've announced this year that we're making an additional $6 billion contribution into the pension, and that's what our plans are for the pension. So we respect the importance of it, and we'll preserve the integrity of it. And we're taking steps this year with significant funding to close that gap.

Jack Richards Because as you know, when we retire, especially the board -- when we retire, we really rely on that pension. That's my plans. I can't make any other plans without that. So can I take your word that you're not going to turn it over to an annuity?

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting

John L. Flannery - General Electric Company - Chairman & CEO I understand, sir. As I said...

Jack Richards Can I take your word?

John L. Flannery - General Electric Company - Chairman & CEO I don't -- actually, I'm not familiar with the issue that you're saying. So that's not a specific plan that anything...

Jack Richards Yes, but it's been reported in The Wall Street Journal and other places that...

John L. Flannery - General Electric Company - Chairman & CEO That's not anything that we've worked on.

Jack Richards All right. And maybe I'll talk to you when I -- I'll be up in Boston in July and maybe I'll have the opportunity to talk to you. But I'd like you say one other thing. The retirees here are in the same boat that I'm in. So you asked the Board of Directors to take out -- applause. I would like to have all our retirees stand up and I'd like to have an applause for all the retirees here because there's a lot of retirees. Just remember, Mr. Flannery, the last thing is seriously, I would hope that you would keep -- a man of your word. You're an Irishman, a man of your word. I'm an Irishman from Boston, and do not turn that pension over to an annuity. It would be a real black eye to the General Electric Company from all the retirees.

John L. Flannery - General Electric Company - Chairman & CEO Thank you. Just keep going. Microphone 2, please?

Paul Reinmann I'm Paul Reinmann. I was a GE employee for 10 years, working with the Knolls Atomic Power Lab until that part of the business was transferred to Martin Marietta. My question is actually quite simple. I've always thought that GE as being a high-tech company, and I enjoyed working for them as an engineer. And I see the technology today on your manufacturing floor that's pretty much current state of the art. I'm sure that's also shared by competitors and they're aware of the same technology. How can I learn more about what's being developed as future technology? And I know you probably can't speak the specifics, although as an engineer, I'd love to hear as much details as possible. How can I learn more about what GE is doing to advance the technology across the line of their businesses?

John L. Flannery - General Electric Company - Chairman & CEO So we continue to invest extremely heavily in technology in every one of the businesses that we're in. I ran the Healthcare business for the last 3 years, just as an example; deep investment in the imaging technology, a whole new era really around artificial intelligence, digital applications of health care. So one area I'd instruct you to look at is just across the company, heavy investment in digital and the ability to take the machines and

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting the information and combine that with software and data and create amazing things that an engineer would truly appreciate. So I'd follow our digital efforts. I think if you look here today, you see a whole wave of changing the way we manufacture things. If you're looking literally for resources, certainly if you go on the website and things of the company and also the individual business units, you'd see that. But to your point, at the end of the day, we have to continue to produce great outcomes for our customers to survive and thrive, and that's really a function ultimately of the technology that we have. So that is a top priority for us, and no business can last over the long term without that. So please keep an eye out for it. It's a top priority. And I think today, it gives you a sense of the quantum change of where we might go with this. So we've had questions for a bit over an hour. I'll maybe just take the last 2 or 3. And then if anyone else has questions that we didn't get to, I'd encourage you to let us know and make sure someone follows up on that. But if we can have 3 more questions, please.

Thomas Hattier John, I'm Thomas Hattier. I'm a 44-year retiree now from GE. My father was 38 years, and my whole life has been GE. And I had just a number of things I want to mention quickly. One is I recently, not too long ago, sent you an email with 13 recommendations on what you could do to help our company on a Friday night. Monday morning at 6:00 in the morning, you responded to me. And I just want to say how encouraged I am that you're listening and that several suggestions that I made, you've already implemented, which is also nice. But what I want to say is keep in mind that your employees, your retirees and your shareholders are a free resource to you, and we are very happy to help. Reach out to us, and we will help.

John L. Flannery - General Electric Company - Chairman & CEO Thank you very much, Thomas. Thanks for your note. Thank you. Microphone 2, please?

John Betchkal Thank you Mr. Flannery, for the last question. I would like to say that I'm from Cleveland, Ohio, and I have 3 worries in life: The first is my football team. The second one, shorter term, is my basketball team. And most important by far is my interest, concern and love for the General Electric Company. And what I would like to say to the 12 directors is you have an opportunity to make history, history in this great company. And on behalf of all the people who are here today but even more so the hundreds of thousands of share owners all around the world, for god's sake, please give it all you've got. We're with you.

John L. Flannery - General Electric Company - Chairman & CEO Thank you very much. One more question, please. And again, I ask anyone else who didn't have their question addressed, please stay around. We'll make sure that we collect those and that I follow up on all those, but I appreciate all of the questions. So we go to microphone 1, please?

Melody Jackson My name is Melody Jackson. I retired with 37 years at General Electric in Fort Wayne, Indiana third generation. My grandfather that retired with 45 years received the Charles Coffin Award. For anyone that doesn't know, he was the first CEO at General Electric. I'm a benefits advocate for our GE retirees appointed by GE Global. I also have a direct contact there as well as the direct contact with Via Benefits. There are a lot of issues that come up. Just as an example, last night, I got a call at 11:30 at night -- I was already here, with a retiree that had an issue. Some of the issues that stand out in my mind, I got called by a daughter that says her father had passed away and her mom had this stack of checks that they did not cash because they thought they were spam. But what they were, they were reimbursements that came from OneExchange or Via Benefits. They didn't recognize what it was. Needless to say, it was over a 2-year period. Well, my suggestion to them was get it deposited. If you have any issues, the checks won't go through because they've expired, let me know. That's part of what I do. I can do HIPAA forms, which I've done for GE as well as Via Benefits, and their direct contact gets back to me as soon as possible. And usually, that's within the maximum 48 hours. A lot of retirees have issues. As the Social Security have stated, 75% of seniors do not have computer skills. That's absolutely true. A lot of what I do are contacts through Facebook. I know

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting everybody (inaudible) on Facebook. When it comes down to it, there'll be comments and other locations that will say -- they'll tag me and start to say, " Melody Jackson, would you check into this?" And I have a stack, this tall, of folders, the people that I've dealt with, issues so far this year. I've learned from Bill Freeda. I've lived and learned from Kevin Mahar as well as the people I work with. Our age group was basically pretty radical when we started. We've gone into the solutions part of it. Well, I would like to be as part of the solutions, not part of the problem. I challenge the benefits people, which we have a phone meeting every year, which I was introduced to last year. I'd like to sit down, go through with them what the issues are, how we can solve them rather than standing back and pointing the finger at each other. We need to be able to communicate to the retirees. 30% to 35% of people do not receive the RRA of $1,000. I am one of those people with 37 years that I did not reach the 65. My goal in life is to be able to take care of these issues with the retirees. There is no way my parents or grandparents would be able to go through this because of the lack of computer skills. A lot of what I do is via telephone, and my e-mails are posted on our website as well as when people have issues, I give it to them immediately or they private message me. I do this all day long besides taking care of a 4.5-year-old granddaughter. So my challenge is I'd like to sit down with the benefits people along with part of our board (inaudible) and come up with some of the solutions and options that people have done, like GM gives $300 a month to their retirees. It's done through the pension, not through RRA and no persons such as Via Benefits to implement it for them. It's part of their pension. It is taxed. And you also have AT&T. My sister and brother-in-law, they draw $4,200 a year on RRA.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, and thank you so much for helping out the retirees. And we've got 3 people at the microphone. Why don't we just pause after these 3 questions and we'll -- I don't want to have you not have your questions. So we'll go to microphone 2, please.

Mike Freido My name is Mike Freido. I'm a business agent, UE Local 506, up in Erie, Pennsylvania. I represent 1,500 active employees and about 845 dislocated employees. And what I'm here to say is more of a statement than it is a question. And I think what -- in my humble opinion, what we have at hand is a branding problem. And I think the brand GE was built on the backs and in the blood of the workers. And I think that, that was why it was one of the most respected brands in the world. And what we've seen is that the company and in the comments that we've heard today from the retirees and some of the active members, some of the things that they've lost in terms of retirement opportunities and pension opportunities, what we've seen is the company, when they are out to protect the bottom line, sometimes, it's at the cost of those employees. What I would ask is, do you take into consideration the fact that we have, I believe, 300,000 active employees worldwide who when you make decisions that affect their lives -- and I'd venture to say around 150,000 retirees, and you can correct me if I'm wrong on that, that are receiving benefits from General Electric that in 2018, January 2018, that $1,000 reimbursement account that these individuals are talking about no longer exist for anyone who turns 65 after that date, that they're asking to be increased now, no longer exist. I think that we need to see the correlation between the retraction of those benefits and the treatment of the employees and the cost and how that is reflected in their attitudes towards the brand and how it's reflected in the perception of the brand from the world. When we talk about worldwide, every employee touches 3 to 7 people at the dinner table or in life, and they have conversations about work with those people. And I think that that's toxic to a company. It's concerning that people feel the way they feel about that brand, that GE brand. So before the light dims and we can't click it back on, I would suggest you take that into consideration and your future decision as a board. I think that you need to invest in your employees. I think that you need to bring them up -- back up to the gold standard that it once was to be a GE employee. And I think that you'll see that pay in dividends in the future, no more short-term gain for long-term pain. Invest now in your people and it'll pay dividends in the long run.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Mike. Microphone 1, please?

Diana Driver Fellow shareholders, I'm Diana Driver. I'm an engineer with Power Services, and I just want to tell you how inspired I am today to hear all of these tremendous stories that GE has brought into your lives in the 30 years plus of experiences that you've had. So thank you for the inspiration and

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APRIL 25, 2018 / 2:00PM, GE - General Electric Co Annual Shareholders Meeting motivation. I'm excited to go back into work tomorrow and continue to push forward and turn the ship around and provide you guys, the share owners, the stock price that you want. And also, I'm excited to sit here and represent. Mr. Flannery, thank you for everything you've done. It is a struggle, but you're doing a great job. Keep it up. And I look forward to next year.

John L. Flannery - General Electric Company - Chairman & CEO Thank you, Diana. Thank you. Last question please on microphone 2?

Unidentified Shareholder Mr. Chair, members of the board, and fellow shareholders, employees. My name is [Al]. We've looked at the past. We haven't talked very much about the future, but if you read the annual report, Mr. Stokes has a stellar job of talking about reset, refocus and renew. He talks about asset utilization. That's an important subject that he did inventory turnaround. Work in process is a bad word. I task the board and the management of the General Electric Company to focus on manufacturing. Manufacturing is what has made this company, and it will dig us out of this hole. I look around at this facility. This is your benchmark, gentlemen and ladies, for the future of the company. The people, I hear an awful lot of dedicated employees. They believe in what they're doing, but we have -- as company shareholders, we have to give them the tools to work with. And that's your job, gentlemen and ladies, to make that happen. So I implore you to run this company from a manufacturing standpoint. And I think Lee Iacocca said a long time ago -- I think that conversation came up about, "What are you going to do? Sell me hamburgers and I'm going to sell you insurance." We can't make money by taking out of one pocket and putting it another. We have to manufacture. Let's manufacture [out of this]. Give the people the tools to work with modern technology, and good things will happen.

John L. Flannery - General Electric Company - Chairman & CEO Thank you so much, great comment. And that's a good way to maybe finish where we started. Thank you so much in the sense that this really is a quantum change in the future of manufacturing not only just for us but as we take it to other companies around the world. And so we continue very much to view the importance of manufacturing and central to the way we think. And we continue to invest a tremendous amount on the technology of doing that. And this is a -- it's an early maybe down payment on what we see as an extremely promising future for manufacturing inside the company and for other manufacturers using GE's new technology. So I think that's a good way to sum up why we're here today. And I just want to thank you again for taking the time to come and share your thoughts. I echo Diana's comments. It was inspiring to hear so many of the stories of multi-generation GE experiences, and that's part of why we're all so proud of the company and love this company. And I can assure you that the management team and the board, we all feel the same way about the company. And we will be working as hard as we can every minute to make sure that we restore that for you. And so thank you again for coming, and the meeting is adjourned.

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