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Event Transcripts Are Based, Companies May Make Projections Or Other Forward-Looking Statements Regarding a Variety of Items THOMSON REUTERS STREETEVENTS EDITED TRANSCRIPT GE - General Electric Co Annual Shareholders Meeting EVENT DATE/TIME: APRIL 27, 2016 / 02:00PM GMT 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. NON-GAAP FINANCIAL MEASURES: In this document, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are posted to the investor relations section of our website at www.ge.com. We use non-GAAP financial measures including the following. • Operating earnings and EPS, which is earnings from continuing operations excluding non-service-related pension costs of our principal pension plans. • GE Industrial operating & Verticals earnings and EPS, which is operating earnings of our industrial businesses and the GE Capital businesses that we expect to retain. • GE Industrial & Verticals revenues, which is revenue of our industrial businesses and the GE Capital businesses that we expect to retain. • Industrial segment organic revenue, which is the sum of revenue from all of our industrial segments less the effects of acquisitions/dispositions and currency exchange. • Industrial segment organic operating profit, which is the sum of segment profit from all of our industrial segments less the effects of acquisitions/dispositions and currency exchange. • Industrial cash flows from operating activities (Industrial CFOA), which is GE’s cash flow from operating activities excluding dividends received from GE Capital. • Capital ending net investment (ENI), excluding liquidity, which is a measure we use to measure the size of our Capital segment. • GE Capital Tier 1 Common ratio estimate is a ratio of equity to total risk-weighted assets . General Electric Capital Corporation (GECC) has been merged into GE and our financial services business is now operated by GE Capital Global Holdings LLC (GECGH). In this document, we refer to GECC and GECGH as “GE Capital”. We refer to the industrial businesses of the Company including GE Capital on an equity basis as “GE”. “GE (ex-GE Capital)” and /or “Industrial” refer to GE excluding GE Capital. Our financial services segment previously referred to as GE Capital is now referred to as Capital. GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted. 1 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us © 2016 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 27, 2016 / 02:00PM GMT, GE - General Electric Co Annual Shareholders Meeting CORPORATE PARTICIPAN TS Jeffrey Immelt General Electric - CEO Michael Barbera IVS Associates - VP, Co-Founder CONFERENCE CALL PARTICIPANTS Bill FreedaShareholder Kevin MaharShareholder Martin HarangozoShareholder Justin Danhof National Center for Public Policy Research - Shareholder Maureen O'Brien City of Philadelphia Public Employee Retirement System - Shareholder Barbara Flaherty Holy Land Principles - EVP, Shareholder Craig WilliamsShareholder Ron Flowers GE Retirees Group - President/Shareholder Antonia MeloShareholder Dennis RocheleauShareholder Jack RichardsShareholder PRESENTATION Jeffrey Immelt - General Electric - CEO Good morning. Welcome to GE's 2016 Annual Meeting. I'm Jeff Immelt, Chairman of the Board of GE. And here with me today are Jeff Bornstein, our CFO; and Alex Dimitrief, our General Counsel. Each year we hold our shareholders' meeting in a city that's important to GE and its shareowners. This year, it's Jacksonville, Florida, and we're very proud to be here. We have more than 1,000 employees in Jacksonville. Our businesses are doing great work here. And last year, we announced Jacksonville would host one of GE's first intelligent city pilots using lighting technology and sensors to increase the energy efficiency for the local government. Also, in 2014, we announced we would invest $70 million to develop a new Oil & Gas manufacturing facility here, bringing jobs and technology to this city. We do business in Jacksonville because we like it and its people. This week, we announced a $250,000 grant to the AGAPE Community Health Network to support and improve cardiovascular health in the community. It's easy to be uncertain as an investor today. The global economy is long on volatility and short on economic leadership, but GE remains a good investment. In a complicated world, we're simpler and more competitive. In an uncertain world, we're skilled in managing through tough cycles. And in a riskier world, we have cultural strength and a lot of cash. We're tested. Companies who think they're perfect can get you in trouble. GE is not perfect, but we make progress every day. In 2015, we continued to take strong actions to make GE better. We transformed our portfolio by exiting most of financial services, while completing the purchase of Alstom, our largest industrial deal, in this sense, superior, which we refocus GE as a high-tech leader. To do so, we sold more than half the company where we lacked competitive advantage and rebuilt our core franchises. At the same time, we accelerated our transformation as a leader in Industrial Internet to become a Digital Industrial company. In the Industrial Internet, we see the next wave of productivity for the company and for our customers. Our team does exactly what they need to do in the future and are compensated to execute. They also have a competitive advantage that capitalizes on our unique depth and expertise. We call this the GE Store. The GE Store captures our ability to share knowledge, technology and capabilities across GE. A culture simplification is essential to win in the future. We're leaving the world of silos and spreadsheets to a world of agile teams that are mission-based. We're acknowledging that speed and simplification are synonymous with quality and innovation. Achievement culture and simplification is a strategic imperative at GE and will define our leadership. 2 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us © 2016 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 27, 2016 / 02:00PM GMT, GE - General Electric Co Annual Shareholders Meeting GE is part of an economic ecosystem that's most competitive in the world. We're all proud to work at GE, a purposeful company that makes a difference in the world, which is something more than what we are today. Some companies are retreating; we're moving forward. And we're committed to deliver for you. Now to our order of business. I'm advised that this meeting is properly convened. We have a quorum and that the proposed resolutions presented in the proxy statement are filed as part of these proceedings. We received proxies representing over 75% of the outstanding shares eligible to vote, and the management proxy committee has voted these shares in accordance with shareowner wishes. It's now my privilege to introduce the members of your Board of Directors and director nominees who are with us today. I'm going to ask the directors to stand briefly as I introduce them so you can see who they are. Andrea Jung, President and Chief Executive Officer, Grameen America, a Director since '98. Shelly Lazarus, Chairman Emeritus of Ogilvy & Mather, a Director since 2000. Shelly is Chair of our Governance and Public Affairs Committee. Bob Lane, former Chairman and Chief Executive Officer of Deere, a Director since '05. Susan Hockfield, President Emerita of MIT, Director since '06. Susan is Co-Chair of the Technology and Industrial Risk Committee. Jim Mulva, former Chairman and Chief Executive Officer of ConocoPhillips since '08. Geoff Beattie, former Chief Executive of The Woodbridge Company, a Director since '09. Jeff is Chairman of the GE Capital Committee. Jim Tisch, President and Chief Executive Officer of Loews Corporation, since '10. Jack Brennan, Chairman Emeritus at Vanguard, a director since '12. Jack is our Lead Director and Chair of the Management Development and Compensation Committee. Frank D'Souza, the Chief Executive Officer of Cognizant, a Director since 2013. Mary Schapiro, former Chairman of the SEC, a Director since '13. Mary is Chair of our Audit Committee. Jim Rohr, Executive Chair, former Chief Executive Officer of PNC Financial, since '13.
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