GE: “Go Big” J. R. Immelt Chairman & CEO December 13, 2005 ““This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.”” GE strategy Safe + reliable growth company GE advantage … scale + breadth + depth 20% A great portfolio … founded on market 10-15% leadership, domain expertise, competitive advantage & financial strength 10+% Reliable execution … with a portfolio that performs consistently while expanding returns Common initiatives … where we can scale Earnings Cash Expanding ideas with speed driving incremental growth generation returns returns 9 Through the cycles A strong team … filled with people who 9 Low risk have broad + deep careers 9 Improving margins This is the way we win JRI Security Analyst 12-13-05/2 General Electric Company Go big Chapter #1 Build a valuable portfolio Priorities for portfolio renewal 1 Faster growth Industrial 2 Higher return Financial 8% 23% 5% Organic 15% ROE growth rate '90-'03 '04+ 2000 2005E Strategic actions Strategic actions + Launch growth platforms … $12B+ + Global Consumer Finance + Invest in healthcare, services, energy, + Financial verticals entertainment + Higher returning businesses + Grow with technology … IGCC, NDT Focus … long-term growth rate Focus … ROE enhancement Exit … slow growth … Motors, GXS Exit … Insurance JRI Security Analyst 12-13-05/4 General Electric Company Great businesses (Revenue – $ in billions) Infrastructure Industrial Healthcare NBCU $42B $33B $15B $14B 35%/14%V 10%/45%V 10%/17%V 10%/16%V OP 18% OP 8% OP 18% OP 21% Commercial Consumer Finance Finance $28B $20B 20%/22%V 15%/22%V ROE 25% ROE 30% % GE segment profit/’05 growth rate 9 Market leadership 9 Competitive advantage 9 Domain expertise 9 Financial strength JRI Security Analyst 12-13-05/5 Market leadership – thought Medical Information Diagnostics Technology • Contrast Agents • Archiving Systems • Molecular Diagnostics Executing a great strategy • Customer Productivity •EMR Cellular 9 Wing-to-wing diagnostics Clinical IT Systems 9 Domain & staying power Evolution Evolution DiagnosticOrgan PACS Imaging Services Life Sciences Clinical Systems • CT, PET/CT • Performance Solutions • Discovery Systems • Ultrasound •MR • Multi-Vendor Services • Protein Separations • Critical Care Systems •X-ray • Asset Management • Anesthesia Systems • Ultrasound Miniaturization and Hospital Productivity Molecular Imaging Clinical Application Connectivity Evolution Evolution Evolution Evolution JRI Security Analyst 12-13-05/6 Anatomical Imaging Maintenance Molecular Discovery Modular, Hard Wired General Electric Company Domain strength + tailwind ($ in billions) Growing middle class/ Developing country Aging population/ global consumer (revenue $B) Healthcare (revenue $B) (assets $B) ~$17 Market $3T spend ~$30 ~8% global ~$185 ’05-’14 ~$25 growth $20 pop. >65 2X GDP $7 $57 $4 $35 '04 '05E '06F '96 '00 '06F '96 '00 '06F Global resource demand/ Installed base growth Content ownership Infrastructure (orders $B) (units) (annual hours produced) Oil Ç ~$45 Domain ~72,000 Digital +4,000 + scarcity ~$38 ~10,000 $34 value connection 8,000 film library 20,000 '04 '05E '06F '95 '05E '00 '05E Portfolio built for above-average growth JRI Security Analyst 12-13-05/7 Competitive advantage ($ in billions) Financial Real Estate/ Distribution Global Consumer Services Verticals – Mid-market Finance +20% ROE ROE ROE ~30% +17% ~25% +17% ~25% ’00-’05 Earnings growth (AAGR) ’05 assets $100B $135B $160B % of assets ~25% ~30% ~40% (ex. Insurance) 9 Deep domain expertise 9 Origination 9 Global position Differentiators 9 Collateralized 9 Low cost 9 Brand 9 GE synergy 9 Secured 9 Operational excellence 9 GE Financial Services focused in high value segments – Substantial competitive advantage JRI Security Analyst 12-13-05/8 General Electric Company Competitive advantage Top Top credit Top GE Commercial universal card diversified & Consumer banks (5) co. (2) fin. (2) Earnings growth – 5 yr. avg. (’00-’05) 20% 12% 10% 12% – Standard deviation 5 19 14 16 ROE – 5 year average 21% 17% 22% 12% % global (revenue) ~45% 24% 21% 33% % U.S. consumer ~10% 54% 73% 24% Commercial & Consumer Finance are more consistent & more diverse with higher returns JRI Security Analyst 12-13-05/9 Financial strength ($ in billions) Industrial Free cash flow Financial $34+ 2X + High tech/service + High ROE + Working capital È $17 + “Triple A” + Low CAPEX (~$3B/yr.)È + Flexible dividends '03-'05 '06-'08 Strong balance sheet Consistent dividend Buyback stock $17 12% $25B $1.00 AAGR 9 ’05 – $5B $6 9 $0 ’06 – $7-9B $0.16 Debt reduction Over funded (Parent support) principal pension plan '90 '06 '05-'08 JRI Security Analyst 12-13-05/10 General Electric Company Invest in growth ($ in billions) Growth platforms From 2001: redeploy Æ invest (revenue) + Building – Exiting $12 3X 9Biosciences 9 Services 9Insurance 9Cable + film 9 Global 9Slow growth 9Consumer Finance 9 Verticals Industrial $4 9Growth platforms + Driving strong returns – IROIC 75+% '02 '06F 50+% ’02-’06 AAGR Oil & Gas +20% Hispanic Media +10% 3% Security +40 HCIT +30 Water +30 '04 '05E '06F 9 A better portfolio today – Continue to invest $3-5B/yr. in Industrial acquisitions JRI Security Analyst 12-13-05/11 Broad + deep portfolio 9 Market leadership Æ win in share + “thought” 9 Domain strength Æ real demographic tailwind 9 Competitive advantage Æ win in the highest value segments 9 Financial strength Æ return to investors + drive growth Entering a period of portfolio stability JRI Security Analyst 12-13-05/12 General Electric Company Go big Chapter #2 Excellent execution + Reliable performance + Expanding margins Execution history Reliable performance + high returns (1990-2005) Execution principles 11 yrs. 21% + Strengthen big pillars of high visibility long-term growth + Achieve growing revenue streams across services + geography + markets + Win in high margin segments + Launch new platforms # years with ROTC ≥10% EPS + “Hardwire” success with operational growth synergies JRI Security Analyst 12-13-05/14 General Electric Company What we are planning for? 1 More volatility Operating bias Interest Inflation 9 Accelerate globally rates 9 Continued focus on Stable in developed world 2 margins/risk 9 U.S. is “fine” 9 Japan Ç 9 Execute growth plans 9 Europe È 9 Hedge with structural 3 Growth in developing world cost out 9 Infrastructure 9 Financial Services JRI Security Analyst 12-13-05/15 What we are seeing Orders/portfolio 3Q YTD 4QE Factors Flow – V% 6% ~5% 9 Managing price/share trade-off Major equipment – V% 27% ~20% 9 Broad strength … across the board YTD 9 3Q backlog $24B, +10% vs. 3Q’04 Services – V% 9% ~10% 9 ’05 CSA backlog $85B, +13% Com’l + Cons Fin assets 5% 8% 9 Strong origination Delinquencies – Consumer 5.23% 5.20% 9 Solid & stable portfolio quality – Commercial 1.24% 1.21% 9 Improving collections Equipment utilization 87% 88% 9 +2 pts. vs. ’04 Continued growth JRI Security Analyst 12-13-05/16 General Electric Company 2005 outlook – continuing operations ($ in billions) Segment Revenue profit ~$151 +13% $V%$V% Infrastructure $42 ~13% $7.8 ~14% +41% +12% Industrial 33 ~7 2.7 ~45 ~$21.4 ~$18.3 Commercial 28 ~13 4.5 ~22 Finance Healthcare 15 ~13 2.7 ~17 NBCU 14 ~12 3.0 ~16 Consumer 20 ~24 3.1 ~22 Revenue Net earnings CFOA Finance 9 Excellent execution … on track for $1.72 EPS (+10%) – 6 of 6 businesses double-digit growth 9 Operating performance on track JRI Security Analyst 12-13-05/17 2006 outlook ($ in billions – except EPS) Continuing operations Range ~$165 ~10% +/- NBCU ratings + market Revenue ~$151 $1.92-2.02 +12-17% +/- Price/inflation environment EPS $1.72 +/- General economy + High end of consolidation benefits 2005E 2006F Accelerating GE growth rate JRI Security Analyst 12-13-05/18 General Electric Company GE Infrastructure ($ in billions) 35% of GE ~$47 10+% ~$42 Revenue ~$9.0 15+% High visibility + long-term growth ~$7.8 + Leading technology Segment + Large & growing installed base profit + Global position + Domain expert '05E '06F Segment ~18% ~19% + Scale business quickly profit % JRI Security Analyst 12-13-05/19 Aviation market is back Airline passenger demand Engine orders (avg. units) 2,800 >2X Revenue passenger ~2,800 miles (billions) 1,800 1,200 1,200 2,300 Sept. 11 Oct. ‘05 '96-'00 '01-'03 '04 '05E 1,800 June ’00 June ’03 June ’06 Major