GE Oil & Gas Subsea Systems 1 GE © 2012 – All Rights Reserved Unauthorised Reproduction Prohibited 2 © 2013 General Electric Company 2 GE © 2012 – All Rights Reserved Building a strong foundation… Subsea Systems Turbomachinery Well Support • Pressure Control • Electrical Submersible Pumps • Logging Services Measurement & Control 37,000+ employees Global Services PII Pipeline Solutions Drilling & a GE - Al Shaheen JV Surface 2007 1994 1997 2004 2008 2011 2012 A Turbomachinery Developed Expanded in Entered the Drilling The “new” GE Oil & Gas company a Service model Inspection & Production GE Oil & Gas becomes standalone Technologies segment GE segment 3 © 2013 General Electric Company Global footprint Dusavik, Norway Aberdeen, UK Newcastle , UK Nailsea, UK Subsea Systems St.John’s, Canada Baku, Azerbaijan Houston, TX Broussard, LA Products & Projects • 1600 employees • 8 manufacturing sites Lagos, Nigeria Onne Port, Nigeria Jurong, Singapore Batam, Indonesia Wellstream Flexibles Macaé, Brazil • 1400 employees Niterói /Rio, Brazil Luanda, Angola • 2 manufacturing sites Jandira, Brazil Perth, Australia Subsea Services • 1300 employees • 10 service centres Manufacturing Service 5 Facilities Workshops GE Oil & Gas Confidential Information – for internal use only Power & Trees Manifolds Controls Processing Offshore Flexibles Services 4 4 GE Oil & Gas Confidential Information – for internal use only Subsea Systems in the UK Local sites delivering global expertise Aberdeen - Global CoE Subsea XT - Global R&D - Engineering 2000+ employees - Manufacturing - Global Services - EUK Services - Drilling Systems - Oilfield Technology Glasgow - Engineering office Charleton Rd, Montrose - EUK Services - Subsea Controls Service CoE - Machining & Fabrication Newcastle - Engineering Brent Ave, Montrose - Flexible Riser COE - Manufacturing - Manufacturing Bristol - Subsea EPC Project Hub Great - Service CoE Yarmouth - Systems Eng & FEED - EUK Services Nailsea - Global CoE Subsea Controls - RM&D ‘SmartCenter’ London - Engineering - Commercial office - Global R&D - Manufacturing - Global Service hub 5 © 2013 General Electric Company 5 GE Oil & Gas Confidential Information – for internal use only 6 © 2013 General Electric Company Today’s global mega-trends … 8.3B 85% growth in 0.5-1% people will live on the middle class Europe GDP growth; earth in 2030 across Asia by 2030 EU muddles through Euro crisis 75% 54% 35% Electricity demand by 2030 Water demand by 2030 CO2 emissions by 2030 7 Sources: GE internal assessments © 2013 General Electric Company 7 GE © 2012 – All Rights Reserved Industry mega-trends ~80 MMboe/day 5x increase $90B of new production in capex per barrel of value to industry through capacity needed by 2020 new capacity ‘08-’16 increased recovery & production, lower CAPEX & OPEX ~50% 9% growth 14% growth of oil & gas engineers in unconventionals in Subsea industry eligible to retire by 2015 industry spend ’12-‘15 spend ’12-’15 8 Sources: GE internal assessments © 2013 General Electric Company 8 GE © 2012 – All Rights Reserved Growth in Subsea (Mboe/d) 200 160 Subsea Floater 120 Fixed 80 Onshore 40 0 '10 '14 '18 '22 '26 '30 $67B Capex ’12 ~ ‘15 © 2013 General Electric Company Industry Challenges • Talent war • No easy oil • Scalability • Nationalism • Project management • Aging assets © 2013 General Electric Company 11 © 2013 General Electric Company Winning the talent war… Recruitment cycle: months to weeks Expand the pool: x-training Effectiveness: structured onboarding Fulfillment: outsourced packages Decentralize: new global hubs Engagement: schools & universities © 2013 General Electric Company Technology enablers… New life Reserves Technology Aging assets • Technology • HPHT • HT to VT shift • Asset integrity insertion • Heavy oil • 20Ksi equipment management • Boosting • Long offsets • “Subsea factory” • RM&D • Separation • Pre-salt • Flow Assurance • Compression Wet Gas SemStar5 “D Series” Tree RM&D Suite Compression Systems © 2013 General Electric Company Building capability… Norway - $100M Investment UK - $300M Backlog - $80M Investment - $4B Industry spend - $300M Backlog - $3B Industry spend West Africa Brazil - $300M Investment - $400M Investment - $1B+ Backlog - $2B Commitment - $15B Industry spend - $24B Industry spend Australia - $100M Investment - $800M Backlog - $4B Industry spend © 2013 General Electric Company Powering the World together 15 © 2013 General Electric Company .