Delivering High Efficiency Products Now and in the Future GE Aviation Delivering High Efficiency Products Now and in the Future Roger Seager

Aviation engines, systems and services Commercial Government Business & General Aviation

Technology value delivers growing GE and CFM installed base Total number of aircraft % fleet by engine manufacturer 21,100 37% 14,000 27% 8,700 22% 15% 12% 5,700 12% 17% 9% Other manuf. 37% 64% 14% 79% 14% 12% 10% 5% 9% Fleet in active commercial service Source: CASE, GE internal studies CFM is a 50/50 joint company between GE and Snecma

GE and CFM engines powering 64% of China’s airlines Air China China United China Postal Okay East Star Shandong Spring Juneyao Chengdu Shanghai Over 1,650 engines powering 835 aircraft China Eastern Aemtc Yangtze River Express Qiangtang Ssamc China Airlines Mandarin United Eagle Hong Kong Donghai Hainan Cathay Pacific Shenzhen China Southern China Sonangol Lucky Air Hong Kong Express *CFM International is a joint company of GE and Snecma (SAFRAN Group)

GE Aviation investing, operating and partnering in China 375 employees in ‘07, growing to 700+ in ‘10 36 Field service engineers at 11 locations $300 million materials sourced Shenyang Shenyang-Liming CF34-10 assembly and test Growth into CF34 MRO Field service office GEA China operation GEA Partner, JV, or supplier Beijing CFM Spare parts center GE Offices Shannon Engine Services Tianjin Shanghai (HQ) Commercial technology center Global research center China Operations Center Jinan Xian New manufacturing facility Created 2,500 new jobs Chengdu Wuhan Suzhou Aviation Systems First parts manufacturing facility Created 90 new jobs Guanghan Aero Engine maintenance training center Xiamen On Wing Support Guanzhou Shenzhen Hong Kong Haikou

GE’s approach to solving some of our customers’ toughest environmental problems All of these trends create unprecedented challenges and opportunities… …for ecomagination. (click) 6 GE Title or job number 11/17/2018

Ecomagination products … Significantly and measurably improving Operating performance Environmental performance +

Aviation ecomagination products GE90-115B 9% lower CO2 10% lower mx cost (vs competing four engine aircraft) CFM56-3 Upgrade 1.6% lower CO2 +4K cycles on wing (vs base –3 engine) GEnx 3x NOx margin 15% better fuel efficiency (vs engine it replaces) CFM56 Tech Insertion 28% lower NOx 4-12% lower mx cost (vs CFM56-5B/7B base engines) CFM International is a 50/50 joint company between GE and Snecma

GE90-115B aircraft engine … innovative, advanced 3D swept composite fan blades Quiet Durable Debris rejection system FOD-free core 9-Stage compressor Lower weight Advanced aero Advanced alloys, coatings Heat resistant Durable

Chinese airlines value GE’s newest products GE90-115B powered 777-300ER and Freighter Most efficient widebody twin pax and freighter World’s most powerful engine Selected in China China Southern China Cargo Air China

GEnx aircraft engine … advancing the state-of-the-art Powering Boeing 787 and 747-8 New composite fan case Aero-refined fan blades GE first counter-rotating architecture More efficient compressor Lean burn low NOx combustor More advanced high pressure turbine Ultra high-lift Low pressure turbine

GEnx fuel efficiency benefit for 787 Annual fuel savings 20% lower op costs per passenger $360 per engine flight hour $2.9 million per year, per aircraft Preferred in China 787 Let’s start with the benefits of a 15% fuel consumption improvement on a 787 versus a 767 … That’s 20% lower operating costs per passenger … Or $160 dollars savings per engine flight hour — more than enough to completely pay for your engine maintenance cost Or … $1.3 million dollars per year, per aircraft. Click for next slide 15% Fuel improvement China Eastern Shanghai China Southern Hainan Assumes fuel at $3.50/USG

Growing regional market presenting new opportunities Worldwide … next 20 years 80% growth in RJ market ~5,300 30-90 seat class ~3,000 90-120 seat class China outpacing global growth … by 2026 … 7x growth in RJ market 900+ regional aircraft in operation Market potential of passenger aircraft in China 2007-2026: 3365

Regional aviation … successful CF34-10A-powered ARJ21 Last year, Jim Stoker described the major milestones on which we had to deliver on time for AVIC I and the ARJ21 program: taking the first engine to test and delivering the first flight test propulsions systems for rollout. I am pleased to say “Mission accomplished!”   The rollout on December 21 was as a great event and the announcement of 100 new orders solidifies the ARJ21 status as a successful program. It will also be the cornerstone GE’s growth in the rapidly expanding Chinese aviation industry. GE’s recognition as ACAC’s top supplier in 2007 not only acknowledges that we met our commitments but it reinforces that we are perceived as much more than a supplier, but as a partner. China recognizes that we are invested in the continued long-term growth of their aviation industry. GE selected as first global partner … recognized as top supplier

CF34-10 designed for high cycle regional jet environment 7% lower specific fuel consumption 15% longer time-on- wing 23% fewer life limited parts Low emissions quick quench combustor … 12% lower NOx* Lower cost of ownership The CF34-10 is our newest engine in the CF34 family and is delivering great results on the E190 and E195.   The CF34-10 features a simple modular design architecture with a single stage high-pressure turbine for low maintenance costs. The –10’s wide cord fan delivers higher thrust and increased efficiency with fewer blades. The advanced aerodynamic airfoils in the compressor and turbine delivery improved fuel burn. But in addition to improved fuel burn the –10 incorporates design features for high cycle durability, reliability and lower maintenance costs. 3D low solidity airfoils … 12% fewer* 53-inch diameter wide chord fan … enhanced durability, more efficient* *As compared to CFM56-7 engine CFM International is a 50/50 joint company between GE and Snecma

Business and General Aviation … investing for performance HF120 … GE and Honda technology Best in class performance M601 … economical and robust Utility aircraft and retrofits 197 HondaJet Spectrum S-40 Let L410 KingAir C90

Next-generation eCore technology Next generation low NOx combustor 3-D aero design airfoils Advanced materials Ti Al Composites CMCs Core development begun Advancing our latest technology New engine core Targeting 16% better fuel burn vs today’s CFM56 CFM International is 50/50 joint venture between GE & Snecma

Advanced core demonstrator Scalable design … state of the art eCore technology Multiple applications 30K Narrow-bodies Architecture options Thrust range Advanced turbofan Regional jets or Open rotor (Additional SFC opportunity) 10K Business aircraft

Moving “beyond the engine” … aircraft systems Flight control actuation Electric power Avionics Integrated propulsion system Environmental controls Systems Control Mgmt Landing gear actuation Building to Tier 1 capability

GE Aviation, Systems selected on platforms large and small Boeing Airbus 787 - Common core system, landing gear & high lift actuation, flight recorder A380 - Landing gear extension & retraction system, actuators, high lift actuation 737 – Avionics, hydraulics, and utilities A320 family – Avionics & hydraulics 777 – Avionics, hydraulics and utilities Regional, business and general aviation

Combining engines and systems … integrated electric power Integrated electric power architecture Working towards aircraft energy optimization Engine and electric power integration Power and critical load integration Performance goals 30% cost reduction 5% less fuel burn 50% size/weight 2x reliability

GE committed to advancing aviation efficiency Long history of innovation delivering today’s most environmentally sensitive and efficient products Expanding capabilities in regional and business jet segments Growing our expertise into aviation systems and engine integration Working towards the most cost effective and advanced technology for future applications 22 GE Aviation 11/17/2018