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Winning in the long term
J. R. Immelt
Chairman & CEO
December 16, 2008
quot;Results are preliminary and unaudited. 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 “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” or “will.” Forward-looking statements
by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could adversely or positively affect our future results include: the behavior of financial
markets, including fluctuations in interest and exchange rates, commodity and equity prices and the value of financial assets: continued volatility and further deterioration of the capital markets;
the commercial and consumer credit environment; the impact of regulation and regulatory, investigative and legal actions; strategic actions, including acquisitions and 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; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive 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.“

“This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to
investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons.”

“In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”




Messages
      The environment is the toughest of our lifetime

      We will earn ~$18B in 2008 … below our forecast last December … but
      our growth will be ahead of the S&P 500

      Our framework in 2009 is to outperform the S&P 500 with Industrial
      earnings growing slightly … 0-5% … while Financial Services deliver ~$5B

      We are taking actions to protect the company for the difficult
      environment we project

      We are driving initiatives to improve long term organic growth, expand
      margins & generate cash

      GE’s investor message is simple:
      + Plan to maintain $1.24/share dividend during a challenging 2009
      + Post recession … growth rate returns to long-term average of ~10%

                                                                                                                                                                       JRI December Analyst 12-16-08/2
2008: environment
  has been challenging




Financial Services industry losses
                         $10T+
                                       All financial segments hit
                                       + Subprime           + CRE
                                       + Corporate credit + Non-subprime
 ~$1T       ~$1T+                      + Credit cards       + Consumer credit

                                       Lots of blame … liquidity, risk
                                       management, complex instruments,
                                       system errors, leverage, regulators

                                       Global expansion … every region &
                                       sector impacted
 Losses      Capital    Reduced
  since     infusion    lending
 3Q’07    since 3Q’07                  Government programs have started
                                       to work
     + Equity losses … $7T

                             Broad system shock
                                                                JRI December Analyst 12-16-08/4
Financial markets restructured
         Liquidated                Intervention          New business model

  Lehman Brothers                   Bear Stearns            AMEX
  Indy Mac                          Countrywide             Goldman/MS
  ~30 banks, S&L                    Wachovia                Insurance industry
  ~170 institutions on watch        Merrill Lynch           GMAC
                                    AIG                     CIT
                                    WaMu
        Redemptions                 Nationalized             Equity raised
  Private equity                    Freddie/Fannie          J.P. Morgan
  Hedge funds                                               Bank of America
                                    Fortis
  Money market funds                                        Wells Fargo
                                    U.K. banks
  Mutual funds                                              Citi
                                    Swiss banks
  Pensions under stress                                     Goldman
                                    German banks
                                                            GE

                 Fewer competitors + risk will be repriced
                                                                   JRI December Analyst 12-16-08/5




We are in a recession
                                              Status

                      Developed market GDP             U.S., Europe, Japan
    Global
   economy            Emerging market GDP              Slower growth: ~5%



                      Unemployment                     Expect U.S. at least 8.5%
                      Home prices                      20%+ from peak
   Consumer
                      Confidence                       All-time low


  Commercial/
                      Capital expenditures             ISM, business confidence
capital investment
                      Usage decline                    IT expenditures, RPM
      decline


                      Financial crisis … began 3Q’07
                      Economic downturn … began 3Q’08
                                                                   JRI December Analyst 12-16-08/6
Historic inflation material cost
reduction        ’95-’04 ’07/’08 Current
                                   average             peak                spot
 Steel ($/s. ton)
 – CRC                              $494              $1,165             $780
 – HRC                               371               1,075               698
 – Plate                             400               1,450             1,180

 Rhenium ($/lb.)                     643                5,100            4,649

 Natural gas ($/mmbtu)               3.45               13.58              5.53

 Crude oil ($/barrel)               24.94             145.29             43.65

 Copper ($/lb.)                       .92                3.96              1.50

 Nickel ($/lb.)                      3.55               23.41              4.29

                  Unprecedented volatility … will help 2009 cost
                                                                           JRI December Analyst 12-16-08/7




Robust government actions
                        Program                           Impact
1 Liquidity programs     TLGP        + Guarantee improves debt pricing & market access
                                       while reducing risk
                         CPFF        + Liquidity backstop stabilizes CP market & re-opens
                                       potential funding source
                         TALF        + $200B proposed consumer/small business ABS
                                       loan facility
2 Housing programs       Mortgage    + Federal Reserve will buy $600B in mortgage-related
                         support       assets to stimulate home purchases

3 Domestic stimulus     Proposed     + ~$600B stimulus package … Infrastructure/eco focus
  programs

4 Global stimulus        Various     + ~$590B China plan … Infrastructure focus
  programs
                                     + ~$260B pan European plan … Energy & Infrastructure

                        Government actions are important
                         Pre-funded $12B of ’09 in 4Q’08
                                                                           JRI December Analyst 12-16-08/8
Impact on GE
                                                           Things that still work
           Known headwinds
    ‒   Customer financing capability                 +     Strong backlogs
    ‒   Recession … ad spending, etc.                 +     Global diversity
    ‒   Unemployment growing                          +     Service predictability
    ‒   Credit cycle/losses                           +     Cost out/restructuring
    ‒   Asset values/impairments                      +     New financing margins
    ‒   FX
    ‒   Customer bankruptcies
                                                            New opportunities
                                                      + Material cost out
         Modeled conservatively
                                                      + Infrastructure stimulus
         but all could get worse

                                   Our actions
             Strengthen Financial Services     Restructure businesses
             Accumulate cash                   Work with governments
             Increase reserves                 Work with customers
                                                                              JRI December Analyst 12-16-08/9




2008 outlook
($ in billions – except per share amounts)
   Total company outlook                  Segment                    4Q             TY          S&P
                                    Industrial (ex. C&I)            0-5%          8-10% Flat
  ~$185B
                                    Capital Finance                ~(65)          ~(30)        (100)

             ~$18B $1.78-1.84       C&I                            ~(80)          ~(65)

                                    Earnings                        ~$4B         ~$18B

                                    EPS incl. restructuring,                                 Same as
                                    higher losses &                                           Dec. 2
                                    other charges            $.36-.42      $1.78-1.84
 Revenues Earnings       EPS
   Decent performance in a brutal environment
   Responded quickly to tough market conditions
   Difficult communication challenge … 80% of S&P 500 revised guidance downward

        Third highest earnings year in GE history … outperforming S&P
                         + record Industrial earnings
                                                                             JRI December Analyst 12-16-08/10
4Q items
($ in billions – after tax)

         ~$1.0-1.4B
                                                                               4Q items

                                 1   Additional losses (in segment)                ~$0.5

                                          +

                                     Restructuring & other charges
                                 2
                                        Business exits                           0.1-0.3
                                        Restructuring & other charges            0.4-0.6

        Restructuring,                                                        $1.0-1.4
        higher losses
       & other charges



                              Positioned for lower cost in 2009

                                                                             JRI December Analyst 12-16-08/11




Strong operating model
                                  Leadership businesses
 GE has strong businesses                Competitive advantage             15-year growth
 Energy Infrastructure                   Power Gen, Wind, O&G                    ~15%
 Technology Infrastructure             Aviation, Trans., Healthcare               10+
 NBCU                                           Cable, Film                       15+
 Capital Finance                      Verticals, Mid-Market Finance               10+
                                         +
                              Common operating initiatives
                                                                      GE       GE vs. peers
 Growth as a process: Organic growth                             2-3X GDP            Better
 Operating excellence: Margins %                                     15              Better
                       Capital efficiency % (P&E/revenue)            13              Better
 Financial strength                                               Triple A           Better
 Leadership development                                               $1B            Better

                          GE is ready for tough environment
                                                                             JRI December Analyst 12-16-08/12
2009 framework




Financial reporting
1) On an annual basis we will give you our operating framework … for 2009:
   + Industrial segment growth … 0-5%
   + Financial Services earnings of ~$5B
   + Corporate/tax/pension/C&I flat

2) We have a plan to maintain the dividend at $1.24/share for 2009
   + Declared 1Q dividend of .31¢/share today

3) The long-term earnings growth rate for GE is ~10% with Financial
   Services earnings at 30-40% of our total

4) We are committed to transparency (similar to 12/2 meeting) & access to
   leadership

5) GE will no longer provide specific quarterly or annual EPS guidance

                                                              JRI December Analyst 12-16-08/14
’09 operating framework
                                                                 Factors
                           ’08E     ’09F
Revenues                      +7%    0-(5)%   + ~3% Industrial organic growth
                                              ‒ Shrink Financial Services (5)%, economy, credit

Industrial segment        +8-10      +0-5     + Backlog, service, gov’t. investment, cost
profit (ex. C&I)                              ‒ Economy, credit

Capital Finance           ~(30)      ~$5B     + Margins, cost
earnings                                      ‒ Losses, gains, volume, FX

Corporate cost/C&I            U      Flat     + Pension, restructuring
                                              + Plan to run C&I … earning about $0.3B
                                              ‒ Tax
                         ~$18B

                                      Critical execution
             Capital Finance is well positioned    Margins will expand
             Maximize strong equipment backlog     Service growth is stable
                           Dividend commitment is strong

                                                                             JRI December Analyst 12-16-08/15




GE Capital Finance
($ in billions)
                   Earnings                               2009 plan basics
                                                ‒ Expectations of higher losses and
                  ~$9
                                                  fewer gains
                                    +10%
                           ~$5
                                                ‒ Collections and volume plan that
                                                  assumes no 1st half improvements
        Capital                                   and takes into account customer
        Finance
                                                  refinancing risk

                                                + Invest @ high ROAs

                                                + Execute $2B (pre-tax) cost-out plan
                  ’08E    ’09F      ’10F
                                                + Expect portfolio margins to become
                                                  positive early ’10
GECC ENI          $545     $525      $515
Lvg. w/hybrids*    ~7x     ~6x       ~6x
                                                + CP <$75B by end ’08 … ahead of plan
*GECC



                  Balanced view of 2009 … position for growth in 2010
                                                                             JRI December Analyst 12-16-08/16
GECS portfolio benchmarking
(as of 3Q’08)
                               % of total portfolio                   GE position vs. banks
                                                               Lower net-charge-off rates
Asset type                          GE           Banks*
                                                               Less consumer exposure, which has
Consumer                            34%          65%           higher loss rates than commercial
Commercial                          66%          35%
                                                               Underweight U.S. credit risk
                                                               U.S. consumer exposure mostly PLCC
U.S.                                46%          84%
                                                               which has smaller average balance,
                                                               lower loss severity & retailer loss
U.S. consumer                       8%           59%
                                                               sharing vs. bank cards
   - cards                          4%           8%
   - mortgage                       0%           39%           Exited U.S. mortgage; no auto & student
   - auto                           0%           2%            loans
   - student loan                   0%           1%
                                                               Commercial is senior, secured positions
   - sales finance/other            4%           9%
                                                               with low loss history (~40 bps. over last
                                                               15 years)
* Weighted average of top 4 U.S. money center banks



              GE portfolio better positioned to weather credit cycle
                                                                                       JRI December Analyst 12-16-08/17




GE Real Estate core debt portfolio
($ in billions)
             Core NEA by LTV                                          Maturity by LTV*
                                                                                                  $24.4
                                                          25
                                                                  <75%
                     >90%                                         75-90%
                                                          20
                      $2.0                                        >90%
                                                          15
               75-90%
                              <75%                                                 $9.4
                $14.2                                     10
                              $24.5                                        $5.4
                                                           5
                                                               $1.5
                                                           0
                                                               2008        2009     2010           >2010
                                                                                   * Excludes owner occupied
 Secured by ~2,500 properties, ~60% in                     $3.3B of ’09 maturities <75% LTV,
 crossed pools, 1.6x debt service coverage                 confident our customers will refinance
                                                           $1.3B of ’09 maturities secured by U.S.
                                                           multi-family; GSEs are still active
 Active asset management over 20 years
 has limited losses in downturns                           Already collected $0.2B of ’09 maturities
                                                           Anticipate GE refinancing of ~$2.5B at
                                                           lower LTV & higher spreads
           Portfolio well positioned to weather the economic downturn
                                                                                       JRI December Analyst 12-16-08/18
Industrial business model
 ($ in billions)

   Industrial revenues                             Built for cycles
                      Organic
                      growth
        ~$110B
                     2-3X GDP       Market leadership
                                    Diversified revenue streams
                                    Services ~70% of profitability
                                    Positioned in themes that society cares about
                       High
                                    ~$50B technology spend this decade
                      margins
                                    Can capitalize on lower material cost
                                    Financial Services verticals
      Low CAPEX

            GE in businesses where we can influence our own destiny
                                                                         JRI December Analyst 12-16-08/19




 NBC Universal
 ($ in billions)
               Segment profit                Significant benefits of diversification

                                                            CAGR                 + Content
            ~$3            0/–       Film &                                      + Int’l
                                                   $0.9                $1.0
                                                             ~5%
                                     Parks
                                                                                 + Ratings
                                                                                 + Fees
                                     Cable         $1.3     ~20%                 + Advertising
                                                                                 + Content
                                                                       $2.1
                                                                                 + Digital/DVD
                                     Broadcast $1.4                              + Content
                                                           ~(33)%                - Ratings
                                     “old NBC”
          ’08E            ’09F                                         $0.4      - Advertising
Segment
profit % ~18%              0/–                      ’05                ’08E
                                                          100% basis
         NBCU impacted by environment, but expect outperformance through:
              Best content … cable focus           International distribution
              Right-sizing cost structure          Improved digital profitability

                                                                         JRI December Analyst 12-16-08/20
Technology Infrastructure
($ in billions)

             Segment profit                                 Dynamics
                                             ‒ Impacted by economy … lower demand
                                 +
              ~$8                            ‒ Credit impact on hospitals, airlines

                                             + Strong services & adjacencies growth

                                             + Global diversity/customer diversity

                                             + Strong backlog

                                             + Strong pipeline of critical products

                                             + Healthcare headwinds       tailwinds
              '08E              '09F
Segment       17%                +           + Verticals help
profit %

                   Markets are tough … service & cost are mitigants
                                                                           JRI December Analyst 12-16-08/21




Energy Infrastructure
($ in billions)
                                                            Dynamics
                  Segment profit

                                ++         ‒ Oil at $50
                  ~$6
                                           ‒ Financing impacts some segments

                                           + Services remain robust

                                           + Winning in right products … gas & wind

                                           + Strong backlog … global diversity

                                           + Margin expansion in all products
                  '08E         '09F
                                           + Positioned for government programs
Segment            16%          ++
profit %
                        Expect cancellations … mitigants are service,
                           global government investment & cost
                                                                           JRI December Analyst 12-16-08/22
Industrial revenue: stress case
($ in billions)

    Planned for environment                           Extreme stress case
                              Order-
           2009 revenues                  1) No new equipment orders in ’09
                             by-order
                              review
       ~$130                              2) No new financing (ex. GE) for ’09 deliveries
                     ~$110
                                          3) Cancellations/terminations

                                          4) 10% decline at NBCU vs. ‘08

                                                     Margin impact – $1.3B

         July        Today
Equip.
backlog $55            $55
                                          Mitigants
     Backlog still strong
                                          + Strong pipeline of commitments
     Expect cancellations
                                          + Government stimulus
     4Q equipment orders ~(10)%,
                                          + Project finance backlog on favorable terms
     service orders 0-5%

                                                                           JRI December Analyst 12-16-08/23




Financing is a competitive advantage
($ in billions)

                                                             Considerations
       ~$40
                                                    + Normal risk & policy reviews
                                   ROE 20%+
                                    margins           (GECS BOD)
                                    + cash
                    ~$14
                                                    + Strategic products &
                                   ~$10
                                                      customers

                                                    + Focus on margins, cash,
     ’09 major Potential          GE                  returns
    equipment financing        “capacity”
      revenue  required
                                                    + Linkage with government
                                                      programs (renewable)
     + Healthcare, Energy/Wind, Aircraft

                       + In this for long term
                       + Build competitive advantage
                                                                           JRI December Analyst 12-16-08/24
Service growth is a competitive advantage
($ in billions)
                                                              Dynamics
       Service revenues
                                                              ’08     ’08
                              $41                           orders revenue
                  $38
      $35
                                          Aviation            9%       13% + IB growth
                                                                           + Cycles
                                                                           + Product delays

                                          Energy              5        10     + IB growth
                                                                              + Margins

                                          Transportation     27         7     + Global growth
                                                                              + Environment
      '08E        '09F        '10F
                                          Healthcare          8         8     + Outsourcing
                                                                              + IB upgrades
             ~30% margins
             ~$120B backlog               O&G                24        26     + IB growth

                         ~$8B of net income … customer based
                                                                                JRI December Analyst 12-16-08/25




Value of services … Aviation
        06/07/08 shipments                                 Installed base dynamics

                   $90B                              40% of engines have not hit first major
                                                     overhaul
   7X service                    <1%
    revenue                    realized
                                                     CFM 56-5B/7B shop visits +21% 2009

    $13B                                             GE90 shop visits +38% 2009
                               ~$10MM
                                                     New aircraft delays result in installed
    Equip.        Services      Services
                                                     base working harder … more services
   revenue        potential     revenue
                                 to date

                             Value of services
                   GE                              Customer
   1 Long-term volume productivity  1 Predictable maintenance costs
   2 Predictable revenues           2 Access to upgrades & improved reliability
   3 New & repair sales             3 Increased engine residual value


                                                                                JRI December Analyst 12-16-08/26
Margin expansion
                   OP %                                           Big funnel
                                                                                                 ∆
                                 +
                                                Volatility & unplanned pricing                   ––
       ~15%

                                                Pricing – deflation                              +

                                                Services mix                                     +

                                                Restructuring                                    +

                                                NBCU Olympics                                    +
        '08E                     '09F



                                 Margin dynamics positive in ’09
                                                                                   JRI December Analyst 12-16-08/27




Value gap dynamics
($ in billions)

         2005-2008                              2008                          2009

     Pricing       Deflation/           Pricing     Deflation/           Pricing      Deflation/
                   (inflation)                      (inflation)                       (inflation)
      $1.5                               $1.6                              ++
                                                                                            +
                     $(3.4)                            $(1.2)




‒   Massive commodity                      + Pricing now recovering cumulative inflation
    inflation starts in ’05 &
                                           + Energy & Aviation price mostly in backlog
    continued through ’08
                                           + Will accelerate into 2010
+/– Pricing started to
    increase but trailed                   ‒ Continued pressure on Healthcare pricing
    inflation

                  Pricing lags (inflation)/deflation cycles … positive in ’09

                                                                                   JRI December Analyst 12-16-08/28
Cost focus
($ in billions)

     Direct material               Base cost                   Indirect cost

     $55          $53
                                 $45        $42
                                                                $24         $22




     '08E         '09F           '08E      '09F                '08E         '09F

  Deflation & exchange        Proactive restructuring      Sourcing deflation (7)%
  favorability                Headcount reduction          Headcount impact on
  Reenergized global                                       indirect spend (3)%
                              Lower spend rates
  supply chain


                         Substantial reduction in ’09 cost
                                                                      JRI December Analyst 12-16-08/29




Operating framework
            Worse                                               Better

                                   Industrial
‒ U.S. DI market                                        + Better margins
                                     0-5%
‒ Global cancellations                                  + Global government
  beyond expectations                                     programs
                                                        + Equipment sales
                                                        + Cost control

‒ Losses/gains                                          + High margins on new
                                     Capital
                                                          business
                                     @ ~$5B
                                                        + Cost control

                                                        + Cost control
‒ Additional                       Corporate
  restructuring                       flat


                                                                      JRI December Analyst 12-16-08/30
Dividend funding
($ in billions)

                         ~$3B                  Cash dynamics
                        cushion
        ~$16
                                      Industrial CFOA – CAPEX       $13-14
                       $13.4
                                      GECS dividend                         0.5

                                      Other/dispositions                       2+

                                      + Working capital offset by progress
                                      + Balance sheet efficiency
                                      + CAPEX reduction
    Total cash       Dividends
                                      + Principal pension plan … no
    generated
                                        contribution in ’09

                  Strong cash performance in tough environment
                                                                   JRI December Analyst 12-16-08/31




Team alignment
                    Management incentives
                   Business       Total company
                                                                Team goals

Earnings                                          50%      Hit ’09 plan
                     25%               25%
                                                           +10% by 2010



Cash                                                       Deliver cash flow
                     25%               25%        50%


                                      50%
                      50%

                        2009-10 incentive programs …
                     management team focused on delivery
                                                                   JRI December Analyst 12-16-08/32
Initiatives create
           value from scale




Growth as a process
  Industrial organic growth                Dynamics

                               1) Grow services
   ~7-8%
                                  + Align with customer productivity


                               2) Position to win in global
                2-3X GDP
                                  infrastructure projects
                   +
                               3) Win in the big themes


                               4) Drive technology & innovation
    '08E          '09F

                Our long-term investing in organic
                   growth will help GE in 2009
                                                          JRI December Analyst 12-16-08/34
Services = customer productivity
 ($ in billions)
            Healthcare - HCA                                      Transportation - China MOR
      5 year $1BN services contract …                                      Trip Optimizer/Locotrol
      comprehensive asset management
                                                                           Increase capacity
      Improved uptime & remote fix                   Services growth       & productivity
                                                      (CSA backlog)
      Shared cost savings/year                                             Fuel efficiency
                                                               ~$130
      Joint technology investment to              ~$120                    Modernization
      drive utilization (RFID)



                        Energy - PG&E                                       Aviation – SWA
                                                     '08E       '09F
Information infrastructure
                                       Deploy 3.3MM GE
                                                                 Customized service agreement
                                       smart meters by ’11
                                                                 Predictable maintenance costs
                                       Time-of-use pricing
                                                                 Engine availability & cash flow
                                       Demand reduction
                                                                 planning improved
                                       Operational
                                       productivity
Electrical infrastructure




                             Cross-company initiative … helps in a downturn
                                                                                             JRI December Analyst 12-16-08/35




 Strong global position
 ($ in billions)

               Industrial global revenues                                      2009 priorities
                                                        15%
                                              $61       CAGR
                                                                         Win major infrastructure
                                                                         orders
                                 $43


                                                                         Establish strategic
                    $26
                                                                         partnerships

                                                                         Build global capability in
                                                                         service, technology &
                                                                         manufacturing
                     '03         '06          '09F
% int’l. 41%                     48%          54%

                              Scale makes GE an advantaged global player
                                                                                             JRI December Analyst 12-16-08/36
Global growth available
          Iraq                        China                      Global rail

      56 units                        $586B                          1,600




    Energy order                Announced fiscal                    Potential
                                   stimulus                       locomotives
7,000MW, value ~$3B …         Rail build out                   India, South Africa,
21 units ship in ’09          Clean energy                     Kazakhstan, China
Additive to 8 units           Industrial collaboration         $5B orders in process
previously announced          + aircraft                       Transportation global
Addresses immediate           Healthcare expansion …           growth ~25%
power needs in Iraq           west & north

      World governments investing $7T in infrastructure ’08-’11
                                                                        JRI December Analyst 12-16-08/37




Global partnerships
                 +
                                                         GE is a great partner
      ~$40B
                                                Build regional positions
                     Regional focus
                                                Co-fund investments
                     Leverage GE
                                                Business collaboration
                     origination

                                                Local growth & investment
   Commercial
   Finance JV
           Other benefits
  Long-term shareholder
                                                   Valuable for all investors
  GE in region … technology & education
  Business collaboration

                                                                        JRI December Analyst 12-16-08/38
GE solving social problems
      Clean                                                                               Healthcare
      energy                                                                              access/cost


         $40B                                                                                      $20B
                                          Business scope

 ecomaginationsm                                                                           “Early health”
                                                   Brand

                                             Global reach

        USCAP                                                                   “Leapfrog”/transparency
                                                   Policy

EFS + EXIM + global                                                                  HFS + EXIM + global
                                        Financial Services

                Positioned our technology to drive positive change
                                                                                                      JRI December Analyst 12-16-08/39




Economic stimulus: clean energy
 • Stimulus Push Gets Greener Tint “President-elect Barack Obama and congressional Democrats
     are intensifying work on a stimulus plan that would dole out roughly a half-trillion dollars … on … an array of quot;greenquot;
     projects … green infrastructure initiatives – such as building renewable energy plants, improving the electrical grid
     and installing quot;smartquot; meters” Wall Street Journal, December 6, 2008

 • Jobs, Clean Energy are Key to Obama Stimulus Plan                                      “Obama aide states: quot;Given the
     magnitude of the problems, you're going to need a large plan. Much of what we would do is double duty, with the effect
     of helping aggregate demand today but also enhancing the productivity of the economy for years and decades to
     come”. quot;Green jobs, healthcare technology and infrastructure fit that.“ Los Angeles Times, December 6, 2008

 • China's $586 billion stimulus package is its quot;biggest contribution to the world,quot; Premier Wen Jiabao
     said Monday, as hopes rose that heavy spending on construction and other projects would help support global growth
     by fueling demand for imported machinery and raw materials. AP, November 10, 2008

 • European Economic Recovery Plan ”… immediate budgetary impulse amounting to 200B Euro…
     and kickstart investment to modernize infrastructure. It will drive a competitive Europe ready for the low-carbon
     future.” Jose Manuel Durao Barroso, November 26, 2008




                                                                                                      JRI December Analyst 12-16-08/40
ecomaginationsm
  ($ in billions)
                  Revenues                                        Priorities
                                                 1 Drive renewables
                                    $25
    72+ products
                                                        Production Tax Credit (PTC)
    Big pipeline
                                                        improvement
                      $17
                                                        Federal Renewable Portfolio
                                                        Standard (RPS)
           $6
                                                 2 Energy grid: big & smart
                                                        Extend grid to best wind sites
                                                        “Smart” = energy efficiency
        '04           '08E          '10F
                                                 3 Greening facilities/conservation
       +   R&D leadership
                                                        Energy growth
       +   Reputation/brand
       +   Plant operations are green
                                                 4 Make USCAP a catalyst for change
       +   Biggest renewable player

                         GE positioned as the clean energy leader
                                                                                 JRI December Analyst 12-16-08/41




                                                                                       legend

  Energy framework                                                                           = 10,000 jobs
                                                                  National RPS        Govt. stimulus actions


Multiplier
                                                     Wind
                                                     12 GW
                PTC extension
                                                 28 MM tons CO2
                Project financing


                                                                             Grid efficiency
                                                                               standards
                     Wind
                                                          Bigger and
                      5GW
                  12 MM tons CO2
                                                         smarter grid
                                                     Enable 20% renewables
                                                       5% grid efficiency
                                                        330 MM tons CO2
                    Smart
                    meters
                                                                               Time
                                                        > 300,000 jobs
                >100,000 jobs
                             Largest Wind provider in U.S. … 5+GW shipped in ‘08
                             Investing to capture smart grid growth
                                                                                 JRI December Analyst 12-16-08/42
Economic stimulus: Healthcare
                   U.S.                                             Global
                                                      “There is a temptation for public authorities
“If we do a smart job of investing in health-
                                                to spend less … cutting back on cancer screening
care modernization … set up electronic          would lead to fewer cases being detected early,
medical records that experts consider an        more suffering and deaths. “
important step towards a efficient health       European Commissioner, Mrs. Androulla Vassilliou
care system.                                    December, 2008

We've got to buy computers, systems and
                                                       quot;I have identified our key priorities for the
so forth. That's an immediate boost to the      coming year including tackling delays in diagnosing
economy … laying the groundwork for             cancer. Work is well underway to catch more cancer
reducing our health-care costs over the         cases earlier.quot;
long-term.”                                     Prof. Mike Richards, UK National Cancer Director
                                                December, 2008

U.S. President-Elect Barack Obama
November 25, 2008                                    Health Minister Zhu Chen has proposed a
                                                package of healthcare reforms with goal to cover
                                                90% of population in 2 years & universal h/c by 2020

Focus on quality & efficiency but                     Continued priority … global
  reimbursement under stress                            build out & investment

                                                                                    JRI December Analyst 12-16-08/43




Healthcare
($ in billions)
           U.S.    efficiency                                Global           build out
                                                             International revenue
         $1.8B
                                                                                                      Gov’t.
                      HCIT leadership
                                                                                                      driven
                                                                       ~$9                +
                      +   Work flow
                      +   Data mining
                      +   Connectivity                 $3
                      +   EMR leadership

                                                       '00             '08E            '09F
         Development partners
                                                   Developing markets double-digit growth
                                                   China returning to growth … rest of Asia,
                                                   Africa & Europe continued strong growth
  Partnering with top tier medical providers       In-country, for-country … value products
  Improving patient outcomes at a lower cost
                                                   Company-to-country … “infrastructure sell”
  Reducing variation in medical care delivery
           Access & efficiency                       Build out for long-term growth
                                                                                    JRI December Analyst 12-16-08/44
Technical & content leadership
   Emphasize investment                                          2009 focus
                                                   + Complete major launches driving
     +                                               energy efficiency

                                                   + Fill out value segments at high
                                                     margins

                                                   + Broader service & IT offerings
               ~$50B this decade
                                                   + Full line of Healthcare launches
               Positive in 2009

                                                   + Drive digital, cable & global at NBCU

                                                   + Focus on top 30 IBs … 30% of GE
 Technology
                                                     revenue by 2012
   spend

                  Maintaining commitment to technology
                                                                               JRI December Analyst 12-16-08/45




New products driving customer productivity
                                                         New prime/late night schedule
           MR750

               Powerful … strongest whole-
                                                                     Enhances NBC’s comedy brand
               body gradients & cutting-
                                                                     Maintains top talent for NBC
               edge clinical applications
                                                                     Eliminates need to program 5
               Simple … most efficient
                                                                     hours per week … makes 8-10 PM
               scanner available – 30 sec. in
                                                                     stronger
               room patient set up


    ’09 revenue ~$130MM                                     Improves cost position

     LM6000 gas turbine                                       Turbo prop engine
              40 – 50 MW … up to 41%                                     Lower fuel consumption
              efficiency                                                 compared to turbofans on
              Most efficient LM in its class for                         short flight
              combined cycle and cogen                                   Generates less noise than
              applications                                               turbofans
              Unsurpassed package flexibility,                           Requires shorter take-off
              diverse fuel capabilities and                              field length
              proven advanced emissions

    ’09 revenue ~$800MM                                      ’09 revenue ~$60MM

                                                                               JRI December Analyst 12-16-08/46
Innovation pipeline remains intact
                                           Smart grid                     Solar
     Batteries




$150MM invested …                  Energy efficiency,              Investment in thin film
lithium & sodium                   productivity & reliability      (Prime Star)
$1B+ revenue potential             $20B/year market by 2015        $1B/year revenue potential

                                                                     China Aviation
                                     Digital pathology
                                                                       (COMAC/AVIC)




JV with News Corp.                 50/50 JV with UPMC
                                                                   Integrated civil avionics
Industry leader                    $2B global market … ’10
                                                                   ~10,000 A/C opportunity
Valuable asset                     product launch

                                 Invest in growth platforms
                                                                              JRI December Analyst 12-16-08/47




Operating Council
 Operational focus through ’10                                  Priorities


                 Value gap
                                                  1 Cycle time improvement … lean


                 Material
                 cost out
                                                  2 Increase margins
  Product
                                    Lean
management
                  Global
                 best cost


                                                  3 Working capital & cash
             Simplification
                   &
             restructuring




                             Drive to best in class performance

                                                                              JRI December Analyst 12-16-08/48
Working capital opportunity
($ in billions)
                    Balances                                 Significant opportunity ’09/’10
                                                                  1 turn improvement
          ~$15       ~$15
                                                         1     Inventory = $2B
                                 ~$13
                                                                  Lean
                                               ~$11
                                                                  Improving cycle times
                                                                  Supply chain management

                                                               Receivables = $2B
                                                         2
                                                                 Lean
                                                                 Driving toward COE platform

                                                               Payables = $1B
        Inventory     Accts. Progress Payables           3
                    receivable                                   Days to pay goal +10 days
                                                                 Longer payment terms in
 Turns     8X          7X                ~50 days
                                                                 tough market

                  $5B improvement over two years … offsets progress

                                                                                    JRI December Analyst 12-16-08/49




Aviation working capital
($ in millions)
                   Inventory                                              Projects
                   $155     $(220)
          $60                                            Engines finished goods consolidation            $100
                                      $(295)
$3.0B

                                                         Cycle improvements assembly/overhaul              $45
                                               $2.7B
         Project-by-project                              Lean improvements mfg./repair                     $30
         20-year supply chain veteran
                                                         NPI schedule reduction                            $60
         Answerable to Operating Council
                                                         IAD process improvement                           $15

                                                         Other productivity improvements                   $45
2008E      2%       NPI       Cycle   Prod.      2009
                                                                                                         $295
          sales                                 target
         growth

                      Driving lean across GE
                      Operating leaders focused on cycle time
                      Large opportunities to reduce working capital
                                                                                    JRI December Analyst 12-16-08/50
Variable cost productivity
     O&G initiatives ~$135MM                              Energy initiatives ~$425MM

                                                                   Wind blade design
                    Service machine efficiencies                   improvements
                    Footprint reductions                           Labor productivity via LCC
                    Quality & testing                              factories
                    enhancements                                   10K quality projects across 17
                                                                   sites


   Healthcare initiatives ~$250MM                         Aviation initiatives ~$350MM

                    Manufacturing yield                            Rhenium & low cost transitions
                    improvement                                    Supply chain conversion
                    Lean install & warranty                        Production and system
                    expense                                        enhancements
                    Transportation air-to-ocean


                         $1B+ productivity projects in progress
                                                                              JRI December Analyst 12-16-08/51




Restructuring & simplification
 ($ in billions – after tax)

                                                                     Revenue/employee up
                                         Overhead reduction
   $2B+                                                             ($/employee in millions)
                                          (G&A % revenues)
                   Drivers

                                                                                               +
                Restructuring          12%                                    $0.6
                – Plant closures
                – Consolidations                   9%
                – Layers                                             $0.4
                                                           8%
                Financial Services
                & Industrial

                Risk reduction

Restructuring
                                        '03        '08E    '09F       '03      '08E          '09F
   & other
  charges
   ’07-’08

                        Proactive restructuring & simplification
                            helping in current environment
                                                                              JRI December Analyst 12-16-08/52
Create value through scale
  Be                      Drive                Build                  Leverage size
  global                  innovation           relationships          & breadth
  Connect locally,        Lead with            Grow customer          Use GE's size,
  scale globally          technology and       and partner            expertise, financial
                          content innovation   relationships          capability, and brand
                                               worldwide



54% revenues outside      ~$50B technology     $120B services          Triple A
U.S.                      spend this decade    backlog                 Company-to-country
Source 45% globally       2,000+ patents/      Driving customer        Generate strong
Operate in 100+           year                 productivity            cash flow
countries                 40,000 engineers     Launched                Margins > peers
3 global R&D centers      100+ IB projects     Mubadala JV             Returns > peers
Company-to- country       Leading cable        Positioned to
                          content provider     deliver solutions to
                          Win in big themes    stimulate U.S. &
                                               global economies

                     Experienced world-class leadership team
                                                                         JRI December Analyst 12-16-08/53




                     Value creation
Portfolio + valuation
      Focus                   Strong portfolio                     Valuation traits
                                                     60%                     Late
1 Built dominant                 Infrastructure
                                                                             90s Today
  Infrastructure
                          Energy     Transportation
  franchise
                                                             Growth         >S&P          >S&P
                          Healthcare Water/O&G
2 Diversified &           Aviation   Ent. Solutions
  strengthen NBCU
                                                             Dividend          +              +
                            Financial
                                             NBCU
3 Improved Financial        Services
  Services through
                                                             P/E              40             10
  Insurance exits          30%                       10%




                                Challenge
    Continued outperformance in Industrial businesses
    Reposition GE Capital around unique, competitively advantaged platforms

                                                                        JRI December Analyst 12-16-08/55




Restore Financial Services value
                         Financial Services value chain

                                        “Factory”
                                                                      “Origination”
  “Raw material”            GE advantage:
    (capital)                                                       GE advantage:
                              Low cost         Treasury
  GE advantage:                                                       Global position
    Competitive cost          Risk             Asset Mgmt.            Brand
    “Triple A”                                                        Domain expertise
                              Talent           Tax


                              Competitive position:
       + Scale         ++ Margins and results > banks + FinCo       +++ Brand/domain

                          Ongoing: 30-40% GE earnings
        + Remix … focus on margins             + Play when GE > banks
        + Smaller … funding criteria/derisk    + Returns of 15%+
               + Build off ’09 base … consistent & conservative
                                                                        JRI December Analyst 12-16-08/56
Capital allocation thoughts
     Cash                                         Priorities
                               1
                       Top         Invest to grow GE Industrial organically
     Cash                            Position already strong … 2-3X GDP
     ~$16B
                               2   Maintain the GE dividend ($13B+)
  Equity raise
                                    40% retail + 40% value investors
    ~$15B                                                                                  In
                                    7% yield with strong balance sheet
       +                                                                                  plan
                               3   Execute on Financial Services plan
  Collections >                      Strengthen balance sheet ($5B+)
  originations                       Debt reduction ~$50B
      $25B                           Cash & bank lines > CP
       +
                      Next         Industrial acquisitions (TBD)
                               4
  Annual ops.                        Only if “top 3” priorities are satisfied
    ~$16B
                      Last     5   Share buyback (TBD)
 Balance sheet
   dynamics                    6   Financial Services origination > plan (TBD)
                                     Financial P/E ≠ Industrial P/E
             Support dividend … still hit long-term growth rate
                                                                      JRI December Analyst 12-16-08/57




                                                                Leadership

                                                                In the right businesses

                                                                Financial strength
Summary
    Giving investors transparency around our operating framework
1
    + ~$5B in Financial Services, Industrial slightly positive (0-5)%, Corporate flat
    + Sustain access & details around segments

    Commitments in a world of low transparency
2
    + Plan to maintain $1.24/share annual dividend
    + Post recession growth rate of ~10%

    Position to benefit as broad economy recovers
3
    + Government investment        + Services
    + Margin enhancement

    Execute on long-term strategy that creates value from scale
4
    + Be global                  + Build relationships
    + Drive innovation           + Leverage size & breadth

    Transforming Capital Finance into smaller, more profitable,
5
    competitively advantaged franchise


                                                                     JRI December Analyst 12-16-08/59

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Ge Webcast Presentation 2008

  • 1. Winning in the long term J. R. Immelt Chairman & CEO December 16, 2008 quot;Results are preliminary and unaudited. 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 “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest and exchange rates, commodity and equity prices and the value of financial assets: continued volatility and further deterioration of the capital markets; the commercial and consumer credit environment; the impact of regulation and regulatory, investigative and legal actions; strategic actions, including acquisitions and 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; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive 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.“ “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons.” “In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.” Messages The environment is the toughest of our lifetime We will earn ~$18B in 2008 … below our forecast last December … but our growth will be ahead of the S&P 500 Our framework in 2009 is to outperform the S&P 500 with Industrial earnings growing slightly … 0-5% … while Financial Services deliver ~$5B We are taking actions to protect the company for the difficult environment we project We are driving initiatives to improve long term organic growth, expand margins & generate cash GE’s investor message is simple: + Plan to maintain $1.24/share dividend during a challenging 2009 + Post recession … growth rate returns to long-term average of ~10% JRI December Analyst 12-16-08/2
  • 2. 2008: environment has been challenging Financial Services industry losses $10T+ All financial segments hit + Subprime + CRE + Corporate credit + Non-subprime ~$1T ~$1T+ + Credit cards + Consumer credit Lots of blame … liquidity, risk management, complex instruments, system errors, leverage, regulators Global expansion … every region & sector impacted Losses Capital Reduced since infusion lending 3Q’07 since 3Q’07 Government programs have started to work + Equity losses … $7T Broad system shock JRI December Analyst 12-16-08/4
  • 3. Financial markets restructured Liquidated Intervention New business model Lehman Brothers Bear Stearns AMEX Indy Mac Countrywide Goldman/MS ~30 banks, S&L Wachovia Insurance industry ~170 institutions on watch Merrill Lynch GMAC AIG CIT WaMu Redemptions Nationalized Equity raised Private equity Freddie/Fannie J.P. Morgan Hedge funds Bank of America Fortis Money market funds Wells Fargo U.K. banks Mutual funds Citi Swiss banks Pensions under stress Goldman German banks GE Fewer competitors + risk will be repriced JRI December Analyst 12-16-08/5 We are in a recession Status Developed market GDP U.S., Europe, Japan Global economy Emerging market GDP Slower growth: ~5% Unemployment Expect U.S. at least 8.5% Home prices 20%+ from peak Consumer Confidence All-time low Commercial/ Capital expenditures ISM, business confidence capital investment Usage decline IT expenditures, RPM decline Financial crisis … began 3Q’07 Economic downturn … began 3Q’08 JRI December Analyst 12-16-08/6
  • 4. Historic inflation material cost reduction ’95-’04 ’07/’08 Current average peak spot Steel ($/s. ton) – CRC $494 $1,165 $780 – HRC 371 1,075 698 – Plate 400 1,450 1,180 Rhenium ($/lb.) 643 5,100 4,649 Natural gas ($/mmbtu) 3.45 13.58 5.53 Crude oil ($/barrel) 24.94 145.29 43.65 Copper ($/lb.) .92 3.96 1.50 Nickel ($/lb.) 3.55 23.41 4.29 Unprecedented volatility … will help 2009 cost JRI December Analyst 12-16-08/7 Robust government actions Program Impact 1 Liquidity programs TLGP + Guarantee improves debt pricing & market access while reducing risk CPFF + Liquidity backstop stabilizes CP market & re-opens potential funding source TALF + $200B proposed consumer/small business ABS loan facility 2 Housing programs Mortgage + Federal Reserve will buy $600B in mortgage-related support assets to stimulate home purchases 3 Domestic stimulus Proposed + ~$600B stimulus package … Infrastructure/eco focus programs 4 Global stimulus Various + ~$590B China plan … Infrastructure focus programs + ~$260B pan European plan … Energy & Infrastructure Government actions are important Pre-funded $12B of ’09 in 4Q’08 JRI December Analyst 12-16-08/8
  • 5. Impact on GE Things that still work Known headwinds ‒ Customer financing capability + Strong backlogs ‒ Recession … ad spending, etc. + Global diversity ‒ Unemployment growing + Service predictability ‒ Credit cycle/losses + Cost out/restructuring ‒ Asset values/impairments + New financing margins ‒ FX ‒ Customer bankruptcies New opportunities + Material cost out Modeled conservatively + Infrastructure stimulus but all could get worse Our actions Strengthen Financial Services Restructure businesses Accumulate cash Work with governments Increase reserves Work with customers JRI December Analyst 12-16-08/9 2008 outlook ($ in billions – except per share amounts) Total company outlook Segment 4Q TY S&P Industrial (ex. C&I) 0-5% 8-10% Flat ~$185B Capital Finance ~(65) ~(30) (100) ~$18B $1.78-1.84 C&I ~(80) ~(65) Earnings ~$4B ~$18B EPS incl. restructuring, Same as higher losses & Dec. 2 other charges $.36-.42 $1.78-1.84 Revenues Earnings EPS Decent performance in a brutal environment Responded quickly to tough market conditions Difficult communication challenge … 80% of S&P 500 revised guidance downward Third highest earnings year in GE history … outperforming S&P + record Industrial earnings JRI December Analyst 12-16-08/10
  • 6. 4Q items ($ in billions – after tax) ~$1.0-1.4B 4Q items 1 Additional losses (in segment) ~$0.5 + Restructuring & other charges 2 Business exits 0.1-0.3 Restructuring & other charges 0.4-0.6 Restructuring, $1.0-1.4 higher losses & other charges Positioned for lower cost in 2009 JRI December Analyst 12-16-08/11 Strong operating model Leadership businesses GE has strong businesses Competitive advantage 15-year growth Energy Infrastructure Power Gen, Wind, O&G ~15% Technology Infrastructure Aviation, Trans., Healthcare 10+ NBCU Cable, Film 15+ Capital Finance Verticals, Mid-Market Finance 10+ + Common operating initiatives GE GE vs. peers Growth as a process: Organic growth 2-3X GDP Better Operating excellence: Margins % 15 Better Capital efficiency % (P&E/revenue) 13 Better Financial strength Triple A Better Leadership development $1B Better GE is ready for tough environment JRI December Analyst 12-16-08/12
  • 7. 2009 framework Financial reporting 1) On an annual basis we will give you our operating framework … for 2009: + Industrial segment growth … 0-5% + Financial Services earnings of ~$5B + Corporate/tax/pension/C&I flat 2) We have a plan to maintain the dividend at $1.24/share for 2009 + Declared 1Q dividend of .31¢/share today 3) The long-term earnings growth rate for GE is ~10% with Financial Services earnings at 30-40% of our total 4) We are committed to transparency (similar to 12/2 meeting) & access to leadership 5) GE will no longer provide specific quarterly or annual EPS guidance JRI December Analyst 12-16-08/14
  • 8. ’09 operating framework Factors ’08E ’09F Revenues +7% 0-(5)% + ~3% Industrial organic growth ‒ Shrink Financial Services (5)%, economy, credit Industrial segment +8-10 +0-5 + Backlog, service, gov’t. investment, cost profit (ex. C&I) ‒ Economy, credit Capital Finance ~(30) ~$5B + Margins, cost earnings ‒ Losses, gains, volume, FX Corporate cost/C&I U Flat + Pension, restructuring + Plan to run C&I … earning about $0.3B ‒ Tax ~$18B Critical execution Capital Finance is well positioned Margins will expand Maximize strong equipment backlog Service growth is stable Dividend commitment is strong JRI December Analyst 12-16-08/15 GE Capital Finance ($ in billions) Earnings 2009 plan basics ‒ Expectations of higher losses and ~$9 fewer gains +10% ~$5 ‒ Collections and volume plan that assumes no 1st half improvements Capital and takes into account customer Finance refinancing risk + Invest @ high ROAs + Execute $2B (pre-tax) cost-out plan ’08E ’09F ’10F + Expect portfolio margins to become positive early ’10 GECC ENI $545 $525 $515 Lvg. w/hybrids* ~7x ~6x ~6x + CP <$75B by end ’08 … ahead of plan *GECC Balanced view of 2009 … position for growth in 2010 JRI December Analyst 12-16-08/16
  • 9. GECS portfolio benchmarking (as of 3Q’08) % of total portfolio GE position vs. banks Lower net-charge-off rates Asset type GE Banks* Less consumer exposure, which has Consumer 34% 65% higher loss rates than commercial Commercial 66% 35% Underweight U.S. credit risk U.S. consumer exposure mostly PLCC U.S. 46% 84% which has smaller average balance, lower loss severity & retailer loss U.S. consumer 8% 59% sharing vs. bank cards - cards 4% 8% - mortgage 0% 39% Exited U.S. mortgage; no auto & student - auto 0% 2% loans - student loan 0% 1% Commercial is senior, secured positions - sales finance/other 4% 9% with low loss history (~40 bps. over last 15 years) * Weighted average of top 4 U.S. money center banks GE portfolio better positioned to weather credit cycle JRI December Analyst 12-16-08/17 GE Real Estate core debt portfolio ($ in billions) Core NEA by LTV Maturity by LTV* $24.4 25 <75% >90% 75-90% 20 $2.0 >90% 15 75-90% <75% $9.4 $14.2 10 $24.5 $5.4 5 $1.5 0 2008 2009 2010 >2010 * Excludes owner occupied Secured by ~2,500 properties, ~60% in $3.3B of ’09 maturities <75% LTV, crossed pools, 1.6x debt service coverage confident our customers will refinance $1.3B of ’09 maturities secured by U.S. multi-family; GSEs are still active Active asset management over 20 years has limited losses in downturns Already collected $0.2B of ’09 maturities Anticipate GE refinancing of ~$2.5B at lower LTV & higher spreads Portfolio well positioned to weather the economic downturn JRI December Analyst 12-16-08/18
  • 10. Industrial business model ($ in billions) Industrial revenues Built for cycles Organic growth ~$110B 2-3X GDP Market leadership Diversified revenue streams Services ~70% of profitability Positioned in themes that society cares about High ~$50B technology spend this decade margins Can capitalize on lower material cost Financial Services verticals Low CAPEX GE in businesses where we can influence our own destiny JRI December Analyst 12-16-08/19 NBC Universal ($ in billions) Segment profit Significant benefits of diversification CAGR + Content ~$3 0/– Film & + Int’l $0.9 $1.0 ~5% Parks + Ratings + Fees Cable $1.3 ~20% + Advertising + Content $2.1 + Digital/DVD Broadcast $1.4 + Content ~(33)% - Ratings “old NBC” ’08E ’09F $0.4 - Advertising Segment profit % ~18% 0/– ’05 ’08E 100% basis NBCU impacted by environment, but expect outperformance through: Best content … cable focus International distribution Right-sizing cost structure Improved digital profitability JRI December Analyst 12-16-08/20
  • 11. Technology Infrastructure ($ in billions) Segment profit Dynamics ‒ Impacted by economy … lower demand + ~$8 ‒ Credit impact on hospitals, airlines + Strong services & adjacencies growth + Global diversity/customer diversity + Strong backlog + Strong pipeline of critical products + Healthcare headwinds tailwinds '08E '09F Segment 17% + + Verticals help profit % Markets are tough … service & cost are mitigants JRI December Analyst 12-16-08/21 Energy Infrastructure ($ in billions) Dynamics Segment profit ++ ‒ Oil at $50 ~$6 ‒ Financing impacts some segments + Services remain robust + Winning in right products … gas & wind + Strong backlog … global diversity + Margin expansion in all products '08E '09F + Positioned for government programs Segment 16% ++ profit % Expect cancellations … mitigants are service, global government investment & cost JRI December Analyst 12-16-08/22
  • 12. Industrial revenue: stress case ($ in billions) Planned for environment Extreme stress case Order- 2009 revenues 1) No new equipment orders in ’09 by-order review ~$130 2) No new financing (ex. GE) for ’09 deliveries ~$110 3) Cancellations/terminations 4) 10% decline at NBCU vs. ‘08 Margin impact – $1.3B July Today Equip. backlog $55 $55 Mitigants Backlog still strong + Strong pipeline of commitments Expect cancellations + Government stimulus 4Q equipment orders ~(10)%, + Project finance backlog on favorable terms service orders 0-5% JRI December Analyst 12-16-08/23 Financing is a competitive advantage ($ in billions) Considerations ~$40 + Normal risk & policy reviews ROE 20%+ margins (GECS BOD) + cash ~$14 + Strategic products & ~$10 customers + Focus on margins, cash, ’09 major Potential GE returns equipment financing “capacity” revenue required + Linkage with government programs (renewable) + Healthcare, Energy/Wind, Aircraft + In this for long term + Build competitive advantage JRI December Analyst 12-16-08/24
  • 13. Service growth is a competitive advantage ($ in billions) Dynamics Service revenues ’08 ’08 $41 orders revenue $38 $35 Aviation 9% 13% + IB growth + Cycles + Product delays Energy 5 10 + IB growth + Margins Transportation 27 7 + Global growth + Environment '08E '09F '10F Healthcare 8 8 + Outsourcing + IB upgrades ~30% margins ~$120B backlog O&G 24 26 + IB growth ~$8B of net income … customer based JRI December Analyst 12-16-08/25 Value of services … Aviation 06/07/08 shipments Installed base dynamics $90B 40% of engines have not hit first major overhaul 7X service <1% revenue realized CFM 56-5B/7B shop visits +21% 2009 $13B GE90 shop visits +38% 2009 ~$10MM New aircraft delays result in installed Equip. Services Services base working harder … more services revenue potential revenue to date Value of services GE Customer 1 Long-term volume productivity 1 Predictable maintenance costs 2 Predictable revenues 2 Access to upgrades & improved reliability 3 New & repair sales 3 Increased engine residual value JRI December Analyst 12-16-08/26
  • 14. Margin expansion OP % Big funnel ∆ + Volatility & unplanned pricing –– ~15% Pricing – deflation + Services mix + Restructuring + NBCU Olympics + '08E '09F Margin dynamics positive in ’09 JRI December Analyst 12-16-08/27 Value gap dynamics ($ in billions) 2005-2008 2008 2009 Pricing Deflation/ Pricing Deflation/ Pricing Deflation/ (inflation) (inflation) (inflation) $1.5 $1.6 ++ + $(3.4) $(1.2) ‒ Massive commodity + Pricing now recovering cumulative inflation inflation starts in ’05 & + Energy & Aviation price mostly in backlog continued through ’08 + Will accelerate into 2010 +/– Pricing started to increase but trailed ‒ Continued pressure on Healthcare pricing inflation Pricing lags (inflation)/deflation cycles … positive in ’09 JRI December Analyst 12-16-08/28
  • 15. Cost focus ($ in billions) Direct material Base cost Indirect cost $55 $53 $45 $42 $24 $22 '08E '09F '08E '09F '08E '09F Deflation & exchange Proactive restructuring Sourcing deflation (7)% favorability Headcount reduction Headcount impact on Reenergized global indirect spend (3)% Lower spend rates supply chain Substantial reduction in ’09 cost JRI December Analyst 12-16-08/29 Operating framework Worse Better Industrial ‒ U.S. DI market + Better margins 0-5% ‒ Global cancellations + Global government beyond expectations programs + Equipment sales + Cost control ‒ Losses/gains + High margins on new Capital business @ ~$5B + Cost control + Cost control ‒ Additional Corporate restructuring flat JRI December Analyst 12-16-08/30
  • 16. Dividend funding ($ in billions) ~$3B Cash dynamics cushion ~$16 Industrial CFOA – CAPEX $13-14 $13.4 GECS dividend 0.5 Other/dispositions 2+ + Working capital offset by progress + Balance sheet efficiency + CAPEX reduction Total cash Dividends + Principal pension plan … no generated contribution in ’09 Strong cash performance in tough environment JRI December Analyst 12-16-08/31 Team alignment Management incentives Business Total company Team goals Earnings 50% Hit ’09 plan 25% 25% +10% by 2010 Cash Deliver cash flow 25% 25% 50% 50% 50% 2009-10 incentive programs … management team focused on delivery JRI December Analyst 12-16-08/32
  • 17. Initiatives create value from scale Growth as a process Industrial organic growth Dynamics 1) Grow services ~7-8% + Align with customer productivity 2) Position to win in global 2-3X GDP infrastructure projects + 3) Win in the big themes 4) Drive technology & innovation '08E '09F Our long-term investing in organic growth will help GE in 2009 JRI December Analyst 12-16-08/34
  • 18. Services = customer productivity ($ in billions) Healthcare - HCA Transportation - China MOR 5 year $1BN services contract … Trip Optimizer/Locotrol comprehensive asset management Increase capacity Improved uptime & remote fix Services growth & productivity (CSA backlog) Shared cost savings/year Fuel efficiency ~$130 Joint technology investment to ~$120 Modernization drive utilization (RFID) Energy - PG&E Aviation – SWA '08E '09F Information infrastructure Deploy 3.3MM GE Customized service agreement smart meters by ’11 Predictable maintenance costs Time-of-use pricing Engine availability & cash flow Demand reduction planning improved Operational productivity Electrical infrastructure Cross-company initiative … helps in a downturn JRI December Analyst 12-16-08/35 Strong global position ($ in billions) Industrial global revenues 2009 priorities 15% $61 CAGR Win major infrastructure orders $43 Establish strategic $26 partnerships Build global capability in service, technology & manufacturing '03 '06 '09F % int’l. 41% 48% 54% Scale makes GE an advantaged global player JRI December Analyst 12-16-08/36
  • 19. Global growth available Iraq China Global rail 56 units $586B 1,600 Energy order Announced fiscal Potential stimulus locomotives 7,000MW, value ~$3B … Rail build out India, South Africa, 21 units ship in ’09 Clean energy Kazakhstan, China Additive to 8 units Industrial collaboration $5B orders in process previously announced + aircraft Transportation global Addresses immediate Healthcare expansion … growth ~25% power needs in Iraq west & north World governments investing $7T in infrastructure ’08-’11 JRI December Analyst 12-16-08/37 Global partnerships + GE is a great partner ~$40B Build regional positions Regional focus Co-fund investments Leverage GE Business collaboration origination Local growth & investment Commercial Finance JV Other benefits Long-term shareholder Valuable for all investors GE in region … technology & education Business collaboration JRI December Analyst 12-16-08/38
  • 20. GE solving social problems Clean Healthcare energy access/cost $40B $20B Business scope ecomaginationsm “Early health” Brand Global reach USCAP “Leapfrog”/transparency Policy EFS + EXIM + global HFS + EXIM + global Financial Services Positioned our technology to drive positive change JRI December Analyst 12-16-08/39 Economic stimulus: clean energy • Stimulus Push Gets Greener Tint “President-elect Barack Obama and congressional Democrats are intensifying work on a stimulus plan that would dole out roughly a half-trillion dollars … on … an array of quot;greenquot; projects … green infrastructure initiatives – such as building renewable energy plants, improving the electrical grid and installing quot;smartquot; meters” Wall Street Journal, December 6, 2008 • Jobs, Clean Energy are Key to Obama Stimulus Plan “Obama aide states: quot;Given the magnitude of the problems, you're going to need a large plan. Much of what we would do is double duty, with the effect of helping aggregate demand today but also enhancing the productivity of the economy for years and decades to come”. quot;Green jobs, healthcare technology and infrastructure fit that.“ Los Angeles Times, December 6, 2008 • China's $586 billion stimulus package is its quot;biggest contribution to the world,quot; Premier Wen Jiabao said Monday, as hopes rose that heavy spending on construction and other projects would help support global growth by fueling demand for imported machinery and raw materials. AP, November 10, 2008 • European Economic Recovery Plan ”… immediate budgetary impulse amounting to 200B Euro… and kickstart investment to modernize infrastructure. It will drive a competitive Europe ready for the low-carbon future.” Jose Manuel Durao Barroso, November 26, 2008 JRI December Analyst 12-16-08/40
  • 21. ecomaginationsm ($ in billions) Revenues Priorities 1 Drive renewables $25 72+ products Production Tax Credit (PTC) Big pipeline improvement $17 Federal Renewable Portfolio Standard (RPS) $6 2 Energy grid: big & smart Extend grid to best wind sites “Smart” = energy efficiency '04 '08E '10F 3 Greening facilities/conservation + R&D leadership Energy growth + Reputation/brand + Plant operations are green 4 Make USCAP a catalyst for change + Biggest renewable player GE positioned as the clean energy leader JRI December Analyst 12-16-08/41 legend Energy framework = 10,000 jobs National RPS Govt. stimulus actions Multiplier Wind 12 GW PTC extension 28 MM tons CO2 Project financing Grid efficiency standards Wind Bigger and 5GW 12 MM tons CO2 smarter grid Enable 20% renewables 5% grid efficiency 330 MM tons CO2 Smart meters Time > 300,000 jobs >100,000 jobs Largest Wind provider in U.S. … 5+GW shipped in ‘08 Investing to capture smart grid growth JRI December Analyst 12-16-08/42
  • 22. Economic stimulus: Healthcare U.S. Global “There is a temptation for public authorities “If we do a smart job of investing in health- to spend less … cutting back on cancer screening care modernization … set up electronic would lead to fewer cases being detected early, medical records that experts consider an more suffering and deaths. “ important step towards a efficient health European Commissioner, Mrs. Androulla Vassilliou care system. December, 2008 We've got to buy computers, systems and quot;I have identified our key priorities for the so forth. That's an immediate boost to the coming year including tackling delays in diagnosing economy … laying the groundwork for cancer. Work is well underway to catch more cancer reducing our health-care costs over the cases earlier.quot; long-term.” Prof. Mike Richards, UK National Cancer Director December, 2008 U.S. President-Elect Barack Obama November 25, 2008 Health Minister Zhu Chen has proposed a package of healthcare reforms with goal to cover 90% of population in 2 years & universal h/c by 2020 Focus on quality & efficiency but Continued priority … global reimbursement under stress build out & investment JRI December Analyst 12-16-08/43 Healthcare ($ in billions) U.S. efficiency Global build out International revenue $1.8B Gov’t. HCIT leadership driven ~$9 + + Work flow + Data mining + Connectivity $3 + EMR leadership '00 '08E '09F Development partners Developing markets double-digit growth China returning to growth … rest of Asia, Africa & Europe continued strong growth Partnering with top tier medical providers In-country, for-country … value products Improving patient outcomes at a lower cost Company-to-country … “infrastructure sell” Reducing variation in medical care delivery Access & efficiency Build out for long-term growth JRI December Analyst 12-16-08/44
  • 23. Technical & content leadership Emphasize investment 2009 focus + Complete major launches driving + energy efficiency + Fill out value segments at high margins + Broader service & IT offerings ~$50B this decade + Full line of Healthcare launches Positive in 2009 + Drive digital, cable & global at NBCU + Focus on top 30 IBs … 30% of GE Technology revenue by 2012 spend Maintaining commitment to technology JRI December Analyst 12-16-08/45 New products driving customer productivity New prime/late night schedule MR750 Powerful … strongest whole- Enhances NBC’s comedy brand body gradients & cutting- Maintains top talent for NBC edge clinical applications Eliminates need to program 5 Simple … most efficient hours per week … makes 8-10 PM scanner available – 30 sec. in stronger room patient set up ’09 revenue ~$130MM Improves cost position LM6000 gas turbine Turbo prop engine 40 – 50 MW … up to 41% Lower fuel consumption efficiency compared to turbofans on Most efficient LM in its class for short flight combined cycle and cogen Generates less noise than applications turbofans Unsurpassed package flexibility, Requires shorter take-off diverse fuel capabilities and field length proven advanced emissions ’09 revenue ~$800MM ’09 revenue ~$60MM JRI December Analyst 12-16-08/46
  • 24. Innovation pipeline remains intact Smart grid Solar Batteries $150MM invested … Energy efficiency, Investment in thin film lithium & sodium productivity & reliability (Prime Star) $1B+ revenue potential $20B/year market by 2015 $1B/year revenue potential China Aviation Digital pathology (COMAC/AVIC) JV with News Corp. 50/50 JV with UPMC Integrated civil avionics Industry leader $2B global market … ’10 ~10,000 A/C opportunity Valuable asset product launch Invest in growth platforms JRI December Analyst 12-16-08/47 Operating Council Operational focus through ’10 Priorities Value gap 1 Cycle time improvement … lean Material cost out 2 Increase margins Product Lean management Global best cost 3 Working capital & cash Simplification & restructuring Drive to best in class performance JRI December Analyst 12-16-08/48
  • 25. Working capital opportunity ($ in billions) Balances Significant opportunity ’09/’10 1 turn improvement ~$15 ~$15 1 Inventory = $2B ~$13 Lean ~$11 Improving cycle times Supply chain management Receivables = $2B 2 Lean Driving toward COE platform Payables = $1B Inventory Accts. Progress Payables 3 receivable Days to pay goal +10 days Longer payment terms in Turns 8X 7X ~50 days tough market $5B improvement over two years … offsets progress JRI December Analyst 12-16-08/49 Aviation working capital ($ in millions) Inventory Projects $155 $(220) $60 Engines finished goods consolidation $100 $(295) $3.0B Cycle improvements assembly/overhaul $45 $2.7B Project-by-project Lean improvements mfg./repair $30 20-year supply chain veteran NPI schedule reduction $60 Answerable to Operating Council IAD process improvement $15 Other productivity improvements $45 2008E 2% NPI Cycle Prod. 2009 $295 sales target growth Driving lean across GE Operating leaders focused on cycle time Large opportunities to reduce working capital JRI December Analyst 12-16-08/50
  • 26. Variable cost productivity O&G initiatives ~$135MM Energy initiatives ~$425MM Wind blade design Service machine efficiencies improvements Footprint reductions Labor productivity via LCC Quality & testing factories enhancements 10K quality projects across 17 sites Healthcare initiatives ~$250MM Aviation initiatives ~$350MM Manufacturing yield Rhenium & low cost transitions improvement Supply chain conversion Lean install & warranty Production and system expense enhancements Transportation air-to-ocean $1B+ productivity projects in progress JRI December Analyst 12-16-08/51 Restructuring & simplification ($ in billions – after tax) Revenue/employee up Overhead reduction $2B+ ($/employee in millions) (G&A % revenues) Drivers + Restructuring 12% $0.6 – Plant closures – Consolidations 9% – Layers $0.4 8% Financial Services & Industrial Risk reduction Restructuring '03 '08E '09F '03 '08E '09F & other charges ’07-’08 Proactive restructuring & simplification helping in current environment JRI December Analyst 12-16-08/52
  • 27. Create value through scale Be Drive Build Leverage size global innovation relationships & breadth Connect locally, Lead with Grow customer Use GE's size, scale globally technology and and partner expertise, financial content innovation relationships capability, and brand worldwide 54% revenues outside ~$50B technology $120B services Triple A U.S. spend this decade backlog Company-to-country Source 45% globally 2,000+ patents/ Driving customer Generate strong Operate in 100+ year productivity cash flow countries 40,000 engineers Launched Margins > peers 3 global R&D centers 100+ IB projects Mubadala JV Returns > peers Company-to- country Leading cable Positioned to content provider deliver solutions to Win in big themes stimulate U.S. & global economies Experienced world-class leadership team JRI December Analyst 12-16-08/53 Value creation
  • 28. Portfolio + valuation Focus Strong portfolio Valuation traits 60% Late 1 Built dominant Infrastructure 90s Today Infrastructure Energy Transportation franchise Growth >S&P >S&P Healthcare Water/O&G 2 Diversified & Aviation Ent. Solutions strengthen NBCU Dividend + + Financial NBCU 3 Improved Financial Services Services through P/E 40 10 Insurance exits 30% 10% Challenge Continued outperformance in Industrial businesses Reposition GE Capital around unique, competitively advantaged platforms JRI December Analyst 12-16-08/55 Restore Financial Services value Financial Services value chain “Factory” “Origination” “Raw material” GE advantage: (capital) GE advantage: Low cost Treasury GE advantage: Global position Competitive cost Risk Asset Mgmt. Brand “Triple A” Domain expertise Talent Tax Competitive position: + Scale ++ Margins and results > banks + FinCo +++ Brand/domain Ongoing: 30-40% GE earnings + Remix … focus on margins + Play when GE > banks + Smaller … funding criteria/derisk + Returns of 15%+ + Build off ’09 base … consistent & conservative JRI December Analyst 12-16-08/56
  • 29. Capital allocation thoughts Cash Priorities 1 Top Invest to grow GE Industrial organically Cash Position already strong … 2-3X GDP ~$16B 2 Maintain the GE dividend ($13B+) Equity raise 40% retail + 40% value investors ~$15B In 7% yield with strong balance sheet + plan 3 Execute on Financial Services plan Collections > Strengthen balance sheet ($5B+) originations Debt reduction ~$50B $25B Cash & bank lines > CP + Next Industrial acquisitions (TBD) 4 Annual ops. Only if “top 3” priorities are satisfied ~$16B Last 5 Share buyback (TBD) Balance sheet dynamics 6 Financial Services origination > plan (TBD) Financial P/E ≠ Industrial P/E Support dividend … still hit long-term growth rate JRI December Analyst 12-16-08/57 Leadership In the right businesses Financial strength
  • 30. Summary Giving investors transparency around our operating framework 1 + ~$5B in Financial Services, Industrial slightly positive (0-5)%, Corporate flat + Sustain access & details around segments Commitments in a world of low transparency 2 + Plan to maintain $1.24/share annual dividend + Post recession growth rate of ~10% Position to benefit as broad economy recovers 3 + Government investment + Services + Margin enhancement Execute on long-term strategy that creates value from scale 4 + Be global + Build relationships + Drive innovation + Leverage size & breadth Transforming Capital Finance into smaller, more profitable, 5 competitively advantaged franchise JRI December Analyst 12-16-08/59