Enabling sustainable growth

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Presentation transcript:

Enabling sustainable growth Eszter Szabó GE Corporate Communications and Public Affairs Leader Central and Eastern Europe (CEE) Thank you for taking the time to meet with us/me to speak about GE’s ecomagination strategy. Today we/I would like go over the ecomagination strategy and cover: What ecomagination is How ecomagination can help you The breadth and depth of products and services that make up the ecomagination solutions portfolio

GE and CEE - a mutual opportunity GE - From jet engines to power generation, financial services to plastics, and medical imaging to news and information, 300,000 GE people in over 100 countries worldwide are dedicated to turning imaginative ideas into leading products and services that help solve some of the world's toughest problems while generating revenues of $163 billion (’06). GE is present in CEE as an investor, customer and supplier with 25,000 employees. Challenge for CEE: How to develop an eco friendly, cutting edge infratstucture for a leapfrog effect? GE, one of the world’s leading infrastructure providers offers a market driven, technology enabled opportunity

Pressure on GE customers Public Opinion Increasing Population Resource Pressure Stakeholders External Climate Change Debate Emerging Markets Growth Customer Let’s spend a moment on the market forces that require today’s business leaders to create a strategy for sustainable growth. When GE was formulating the ecomagination strategy, we identified three key factors impacting customers and driving a need for solutions that address both operating and environmental challenges: Resource pressures including energy & fuel costs and availability, water scarcity – primarily driven by population and emerging market growth External stakeholders concerns whether they be shareowners, institutional investors, the general public or those engaged in the climate change debate And increasing environmental regulation producing more stringent emissions standards and likely carbon constraints Regulation Carbon Constraints Emissions Standards

Grow revenues to $20B Double R&D to $1.5B Reduce GHG Inform public It resonates because its true to who we are as a company. And true to our culture we made 4 bold, concrete commitments. By 2010, we will: Grow revenues to $20B Double R&D to $1.5B Reduce GHG Inform public So let’s take a look at how we’re doing. CLICK

A breadth and depth of solutions GE has reviewed and certified a significant portfolio of products across our businesses to ensure that we deliver multiple ecomagination solutions to the multiple challenges our customers face. With our wide variety of businesses, GE is uniquely positioned to provide an unparalleled breadth and depth of solutions.

45+ certified ecomagination solutions Transportation Aviation, Rail, Automotive, Marine, Fleet Industrial Lighting, Appliance, Motor, Finance Energy IGCC, Solar, Biogas, Wind, Gas turbines Water Reuse, Desalination, Industrial, Cooling Not only are we investing in tomorrow’s solutions, but we are already delivering a diverse set of ecomagination products to our customers today. GE is a leader in the depth and breadth of its environmentally beneficial offerings. Let me give you a few quick highlights… Energy: Cleaner coal – GE’s a leader in bringing Coal Gasification to the market We are the world’s leading producer of renewable resource technologies like wind and solar. GE sells more than double the number of wind turbines of our next competitor in the U.S. H System Turbine – the first gas turbine-combined cycle technology capable of achieving 60% efficiency; the “four-minute mile of turbine efficiency Water: Water technologies that help customers conserve more than 3 billion gallons of water with strength in desalination and wastewater reuse… Transportation: GEnx – a new generation of engine technology with profound environmental benefits… Evolution – the cleanest electric-diesel locomotive. Produces 40% less emissions and up to 5% greater fuel efficiency than similar locomotives. Consumer & Industrial: Our products include some of the world’s most efficient household appliances, lighting solutions and medical equipment. Energy Star Partner of the Year – GE’s lighting and appliances division won this prestigious award again in 2006 for outstanding contributions to reduce greenhouse gas emissions through production of energy-efficient household lighting and appliance products. GE now offers 420 appliances and 163 lighting products that are Energy Star rated.   These solutions are creating shareholder value by delivering increased revenues and reduced costs to our customers…  (click)

ecomagination … customer value Significantly and measurably improving Operating performance Environmental performance + We spoken quite a bit about addressing customers’ economic and environmental challenges with ecomagination solutions. To ensure that GE delivers customer value on these fronts, each ecomagination product or service must meet two key criterion: They must significantly and measurably improve OPERATING PERFORMANCE and ENVIRONMENTAL PERFORMANCE. This is not an either or proposition. To ensure that GE’s ecomagination solutions meet these two criterion, we put each product or service through a rigorous, data driven certification process that includes an independent third party audit.

ecomagination … customer value Enterprise Solutions Company to Technology Development Marketing & Best Practices Infrastructure Development China Company to Country The ecomagination value proposition resonates with two key customer segments: company to company company to country Each segment is able to leverage the value in different ways. We hope that we can help you take advantage of the program . Thank you. Local Commitment India Training & Education UAE

ecomagination value to companies “The GEnx has improved fuel efficiency per seat or per ton mile by about 15%. That’s 15% less fuel burned and 15% less emissions. It’s a tremendous advance.” ecomagination value to countries “Rural Electrification projects can be a catalyst in helping India meet almost 50% of our rural electrification needs by using renewable energy. We are excited to have GE associated with these initiatives through its world class technology and innovative solutions” Use if you have questions about “case studies” or need to address questions about “customer testimonials”.

ecomagination value to Poland/EU IGCC Cleaner Coal - GE Infrastructure, Energy Using an Integrated Gas Combined Cycle, GE converts coal into a gas that can be burned in a gas turbine while CO2 is captured. Opportunity identified at region’s first Stakeholder Dialogue event organized by GE, REC and AmCham Poland in ‘06. GE IGCC Technology Center announced in Warsaw ’06. Potential in EU 12 projects – Poland to be the first?

GE - Energy Financial Services Critical enablement tool $10B to $12B in assets ~$1B renewable portfolio 300 energy experts AAA rating Serving customers from “wellhead to wall socket” One of industry’s biggest renewable portfolios: ~$1B Geothermal (7%) Solar (11%) Hydro (15%) Wind (46%) Biomass (21%) We also put our “money where our mouth is” and back our energy ecomagination portfolio with available investment funding for customers. In fact, our Energy Financial Services team has on the industry’s biggest renewable portfolios – valued at nearly 1 billion dollars. 11 GE 12/31/2018

GE - Energy Financial Services European renewable project examples Alsleben Wind Farm - Germany 37 GE 1.5MW turbines Annually produced power: 30,000 homes Annual GHG saving: 100,000 tons The Krusemark wind farm - Germany 8 GE 1.5MW turbines Annually produced power: 10,000 homes Annual GHG saving: 35,000 tons REpower Systems and Denker & Wulf – Germany EUR 135,500,000 66 REpower 1.5MW MD turbines, a total electricity production of 99MW Annually produced power: 60,000 homes Annual GHG saving: 200,000 tons Serpa Solar Plant - Portugal The world's largest solar photovoltaic power project $75,000,000 11MW solar power plant, comprising 52,000 photovoltaic modules on 150 acres—which will remain productive farmland. Annually produced power: 8,000 homes Annual GHG saving: 30,000 tons

GE as a partner in Hungary Apple of Our Eyes – school illumination project Government initiated project to provide assistance to maintainers of centrally funded institutions of public education in upgrading the lighting and heating systems of the social, cultural, educational, health care, public administration or sports facilities. Complex service provided by a single partner: no need for public procurement process, initial investment or loan from participating institutions. Participating manufacturers (GE Hungary Zrt, Viessman Kft) provide extended guarantees on products installed. Program puts no financial burdens on government, schools or partners: Maintainers of the institutions will operate the new equipment under lease agreements. When the lease period expires, the equipment may be transferred to the maintainers for a symbolic sum. Financial solution allows the lease fee to be covered from saving on earlier heating and electricity expenses. Project credit line: 50 Bn HUF (for 5 years) provided by OTP Bank Nyrt., against the guarantee of International Finance Corporation (IFC), a member of the World Bank Group.

And now I’d be happy to take questions.