GE Power 120116

GE POWER December 1st, 2016

Caution Concerning Forward-Looking Statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution- concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. © 2016 General Electric Company - All rights reserved GE Power ~$28B* revenue ~58,000 employees >150 countries WATER & GE HITACHI POWER GAS POWER POWER STEAM POWER DISTRIBUTED NUCLEAR DIGITAL SYSTEMS SERVICES SYSTEMS POWER ENERGY SOLUTIONS

Schenectady, Baden, Baden, Trevose, Wilmington, San Ramon, NY, USA Switzerland Switzerland PA, USA NC, USA CA, USA

FUNCTIONAL OPERATIONAL DIGITAL EXPERTISE EXCELLENCE CAPABILITY

*2016 Estimate

Alstom execution DIFFERENTIATED GLOBAL DIGITAL ü Strong customer acceptance Products & Services Presence/Talent Capability ü Global capabilities/footprint ü Integration & synergies on track

Expanded capability ü Extended scope/á $/Kw ü Steam (equipment + services) ü Services upgrades/oOEM

Margin enhancement ü Global sourcing w/scale ü Vertical integration/insource ü Brilliant factory

A more valuable business … well positioned to lead

© 2016 General Electric Company - All rights reserved Global Power outlook World electrical generation by fuel (TWh in ‘000s) ü Slow growth, volatile world … Pockets of growth, localization wins ~31K Renewables ü Energy demand ~2-3% … ~3% CAGR 1.2B people without power Nuclear ü Majority still centralized power … ~24K 7 Oil Gas/Coal-Steam/Efficiency big role 5 3 Coal ü Services & Digital 1 Gas New offerings, more productivity 3 Source: GE Power Marketing ü Industry in transition … 1 COP21 positioning, diverse technology required 11 9

5 7 2015 2025 4

Industry dynamics How GE wins Gas Turbines >40MW 1 50%+ less cost/kw than all other energy sources 100% 1 Gas Turbine 90% homes powers 750,000 80% H-Class 70% 32% 2 Best power density/land use of all technologies 60% F-Class 46% 1,100mw Combined 17 acres of land 50% Cycle Plant requires

40% 27% 30% 45% 3 Operating flexibility offsets renewables variability

20% E-Class Full Gas Turbine 17% 16% 10 minutes 10% output in less than Intermediate 40-100MW 12% 11% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 4 World record efficiency … 62.2% Intermediate <100MW E Class F Class H-Class ~1pt. Combined Cycle 65% By 2023 Overall gas segment expected to be flat Advantage investing for Industry shifting to H class

Source – GE Power Marketing 5

Contributions Alstom value creation GE Alstom Heat Recovery á Combined cycle performance Gas Steam Generator Turbine • +0.5 pts CC efficiency improvement • Bottoming cycle enhancements Grid Solutions â Cycle time for quicker power • ~$2.5B extended scope orders • 20% faster with virtual plant and modularity â Product cost + á volume Gas Turbine • Cost â ~$350MM and performance á Generator Steam • $25MM+ CM from insourcing initiatives Turbine Steam Turbine Generator ü Synergies on track

Expanded offering + improved performance = better outcomes 6

2016 PROGRAM OVERVIEW DIFFERENTIATED WORLD-CLASS TECHNOLOGY EXECUTION

ü 25 unit shipments 62.2% efficiency üTY margin positive ü50/60Hz models fully validated ü2017 returns improving 1st 7HA.02 Shipment

ESTIMATED HA BACKLOG 1/1/17 Record output: 432MW simple Fulfillment on-track: 17 shipments cycle and 603MW plant with 8 to go 30 21 Gas Steam Extended scope turbines turbines ~$550MM

40 22 2 models Generators HRSG in 1 year

Flawless validation: zero fault Integrated solutions … Turnkey testing (7HA.02) with partner 7

© 2016 General Electric Company - All rights reserved Integrated offerings What is our Steam business ü Integrated packages (EP) ü Power Block/Turbine Island (EPC) ü Full turnkey (EPC) Boiler island • Boilers for all fuels: Coal, Oil, Gas • Two-Pass, Tower and CFB AQCS technology • Flue Gas • Coal Mills Desulphurization • NOx control: SCR Systems • Particulate Control Turbine island • Mercury Control • Steam turbine • Generator • Condensers/heaters Digital • Performance Optimization • Boiler Optimization • FlexiLoad 30% 30% 50% • Fuel Analyser of the world’s of the of steam turbines steam turbine world’s for nuclear capacity boilers power plants

47.5% 2 AWARDS: EPC of the Year & Efficiency Coal Plant of the Year

RDK8 (GERMANY) TANJUNG BIN 4 (MALAYSIA) Customer: EnBW Customer: Malakoff Full Turnkey Plant (EPC) Full Turnkey Plant (EPC)

$1.1B $800M $220M $165M +0.8B USD USD USD USD

HINKLEY POINT (UK) HASSYAN (DUBAI) TELANGANA (INDIA) HUBCO 2 (PAKISTAN) Customer: EDF Energy Customer: ACWA Customer: NTPC Customer: NWEPDI Two conventional power islands / ARABELLE™ 4x66OMW USC Integrated Power Package (i.PP) 2x800MW USC Steam Turbine Generator Islands 2x66OMW Steam Turbines, Generators, Boilers

GENERATOR

STEAM

GAS

OPERATIONS AND TOTAL PLANT MAINTENANCE CORE CROSS-FLEET STRENGTH (oOEM) GAS GE

Alstom

Alstom capability enables Fleet360* 10 * Trademark

Upgrades growth Better Together ++ 500+ Gas upgrades ü Alstom IB, combined technologies ü 2%+ efficiency, extended life Upgrades 275

Steam upgrades +/++ AGPs 104 135-150 ü GE IB, combined technologies 2015 2016E 2017F ü 2%+ efficiency, lower product cost

Clear customer value proposition Total plant solutions ü Output, efficiency, flexibility, reliability, emissions ü Plant outcomes incl. GT/ST/Boiler ü Improved performance/economics ü Sustain gas growth … continued investment in NPI ü Expand upgrades to rotors, steam, total plant Analytics: Lifing, M&D, Digital ü Advanced analytics for plant ü Improved productivity on full plant

GE GE + Alstom

Steam Steam GE + Alstom: a more capable 13% Generator 15% service business 5% OEM 12% Boiler 6% ü Largest installed base 82% 67% Generator (% of segment served) Gas GE IB Gas GE + Alstom ü New capabilities beyond gas turbines

~$25B ~$27B Alstom IB ü Fleet360* total plant service solutions ~11,900 units Cross-Fleet Cross-Fleet IB (oOEM) GE IB GE ~56,000 units ~15,800 units $18 ü Stronger local presence and footprint

OEM Cross Fleet Source – GE Power Marketing

© 2016 General Electric Company - All rights reserved Cost competitiveness SG&A savings Product cost savings 7HA.02 Heavy Duty GT st (% of sales) vs. 7F.05 launch 1 11% unit cost Alstom Start lower 10% kW pivots $/kw kW pivots

$/kW 30%

Time ü ~$460 MM cost out over last 5 years ü Cross-functional COEs enable should cost ü Consolidate structure, functional cost, ü Simplified features & material selection shared services ü Multi-platform component strategy ü Big part of Alstom synergies

Greenville, South Carolina, USA Hangzhou, China Dammam, Saudi Arabia

Belfort, France Birr, Switzerland Pune, India Seoul, Korea

Jenbacher, Austria Schenectady, New York, USA Batna, Algeria

Global centers of excellence … local, high quality, cost competitive 14

Advanced manufacturing Digital Thread Leveraging additive for performance, cost, & cycle Leveraging Technology to drive efficiency

900 Machines SIMPLIFY SYSTEMS 17 CONNECT 1 Factories ITO MACHINES 1 1 ERP PLM 13 Greenville, SC advanced Killer Apps manufacturing center $250M Productivity OPTIMIZE WORKFORCE

ü 1st additive parts operational … enabling new volume ü Simplifying IT with strategic ERP’s ü H-class technologies developed & industrialized ü Connecting the enterprise horizontally

Technology investments enabling cultural transformation 15

Distributed Energy

DIGITAL OUTCOMES DRIVE … … BACKLOG GROWTH

+5% +1% Services backlog Starting Total plant + ~$60B Power Services backlog … reliability availability ~$60B 1 driving growth

Delivering outcomes by 2 -10% +1% deploying digital solutions Startup Efficiency fuel Maximizing value by combining 3 plant engineering & analytics

$0.7B Total plant focus ... expanding +3% -10% 4 Capacity Emissions 2016E 2017F coverage beyond our equipment Core services/additional sales Average values, site-specific dependent Digital backlog 17

P GE advantage: bringing physics based expertise and data analytics to deliver value for customer P How we are executing:

Predix-Powered Efficiency 10 year value Product APM 1% $30MM Neuco … OO 1% $30MM OO (Gas) 1.5% $45MM Hardware/svc 0.5% $15MM

P $240MM of additional value from existing Process Digital Power Optimal installed base Engineering + Plant setting P Gain share model

Improving efficiency of aging installed base … outcome focus 18

1H $850

500 350 300 1H 130 $223 50 2014 2015 2016E

ü Great, high-return global ex Alstom Power business ++ + Alstom $21.5 ü Clear competitive advantages Revenue ++ + − Technology leadership Services $4.5B − Globalization … world-class & flexible supply chain

− Strong services business … Digital Op profit large installed base − Digital competitiveness

Alstom Metem '15 '16E − Simplification & culture

OP% 20.9% - ü Smart capital allocation in a dynamic environment

ex Alstom 22.3% FastWorks