General Electric (GE)

1. General Electric(GE) John Myers Rob Park Matt Richter Tuesday, November 22, 2005

2. Company Overview • General Electric (GE) Company was founded as a creation of a merger between Edison General Electric Company and Thomson-Houston Electric Company in 1892. • GE Company is a diversified industrial corporation engaged in the development, manufacturing, and marketing of various products for the generation, transmission, distribution, control, and utilization of electricity • Operations are held in approximately 100 countries worldwide. • Headquarters based in Fairfield, Connecticut.

3. GE’s Business Segments (past) • Prior July 5th, 2005, GE’s businesses operated within 11 different segments: • Advanced Materials, Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment and Other Services, Healthcare, Infrastructure, Insurance, NBC Universal, and Transportation

4. GE Market-Focused Businesses • As of July 5, 2005, GE reorganized its 11 business segments into 6 market-focused core businesses: • GE Industrial: provides a broad range of products and services throughout the world, including: appliances and lighting, plastics and silicones products, andequipment services • GE Infrastructure:one of the world’s leading providers of fundamental technologies to developing countries, including: energy, oil and gas, and water process technologies • GE Commercial Finance:provides loans, operating leases, financing programs, commercial insurance, and an array of other products and services aimed at enabling businesses worldwide to grow

5. GE Market-Focused Businesses • GE Consumer Finance: aleading provider, under the GE Money brand, of credit services to consumers, retailers and automotive dealers around the world • GE Healthcare: is a leader in the development of a new paradigm of patient care dedicated to detecting disease earlier and helping physicians tailor treatment for individual patients. • NBC Universal:is one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience

6. Energy Consolidated 3-Year Revenues Insurance 14% 19% Transportation 2% 17% Healthcare NBC Universal 24% 10% Commercial and Consumer Finance 8% 6% Infrastructure Advanced Materials, Consumer & Industrial and Equipment & Other Services Total Segment Profits Energy 7% 2% Insurance 22% Transportation 32% 4% Healthcare NBC Universal Commercial and Consumer Finance 14% Infrastructure 10% 9% and Equipment & Other Services Segments Advanced Materials, Consumer & Industrial

7. Segments • Three segments whose operations have a significant effect on consolidated results and reflect their changing economic environments are Energy, Insurance and Transportation • Energy segment is well positioned for its markets in 2005 and beyond • Overall, Transportation reported segment profit that grew $0.6 billion in 2004 • Results at two major segments, Healthcare and NBC Universal, reflected continued investment and growth over the last three years • Healthcare showed strong growth as 2004 revenues and segment profit both rose about 50% since 2002 • The combination of NBC and VUE in 2004, and successful acquisitions of Telemundo and Bravo in 2002, has created a diversified world-class media company • Most other operations achieved operating results in line with expectations in the 2002 to 2004 economic environment • Solid core growth, disciplined risk management and successful acquisitions have delivered strong results in commercial and consumer finance • Infrastructure, with growth platforms such as security and water treatment, continued to grow significantly through acquisitions

8. Market Outlook • Market is increasing through Global growth

9. Global Growth • Global revenues rose 18% to $71.8 billion in 2004 • GE revenues in Europe rose 40% led by Healthcare and NBC Universal reflecting the Amersham acquisition and the combination of NBC and VUE • GE revenues in the Pacific Basin increased 13% led by Advanced Materials, Infrastructure and Energy. • U.S. exports rose 35% on strong growth at Energy and Transportation

10. Ratios Comparison ***It is important to note that negative free cash flow is not bad in itself. If free cash flow is negative, it could be a sign that a company is making large investments. If these investments earn a high return, the strategy has the potential to pay off in the long run.

11. Recent Headlines in 2005 • 6/27 - GE reorganizes business units • 11 units down to 6 • 7/8 - Growth and emerging markets conference • Int’l Operations generate half of GE revenue and should grow 15% in 2005 and grow for 5+ years • 10/14 - Reports 9% overall revenue growth • Consumer and Commercial Finance doing well • 11/18 - Sells insurance business to Swiss Re, further divesting its insurance business

12. Charting the Headlines 6/27 11/18 10/14 7/8

13. What Bears Might Say… • Accounting is not always conservative • GE’s large size makes it difficult to increase revenue • Exposed to risk across many industries • Goodwill too large of a percentage of assets due to many acquisitions

14. Bull’s Point of View • Best growth numbers in years this 1st Quarter • Revenue 19% and Earnings 25% • GE invest heavily in R&D = Comp. Adv • $12.5 Billion over last 5 years • Uses technologies across different units • Selling off insurance business • Lost $700 Million over last 5 years • GE does not over-invest • Dividend payout ratio ~50% over past 4 years • Strong Management • Jeff Immelt’s Pay

15. BUY Currently $36.20 AAA Credit Rating Making a run S&P 500 Up Morningstar $38.00 Fair Value DCF = $37.68 Recommendation

16. Questions????