iSave Synergy Savings Management Training 17 January, 2017

Agenda Background Synergy Savings Process iSave Live-Demo Q&A iSave Team Subject Matter Experts (SMEs) Synergy Savings Process Savings Categories Key Definitions Parent/Child Process Approval Process Approval Thresholds iSave Live-Demo Q&A

Background

iSave Team Paul Duff Sheena Anthony JaJa Stoudemire Global Indirect Sourcing Governance & Analytics Leader Sheena Anthony Savings Program Manager Support Team JaJa Stoudemire iSave Analyst Elizabeth Meisberger iSave Analyst Ankush Lodha Savings Finance Leader Ankith Asthana Savings Reporting Leader David Bushong iSave Intern Subject Matter Experts (SMEs) 26 SMEs Genpact Team Srikanth Gollapadi Gopi Anandan Nizam Cs Presentation Title

Subject Matter Experts (SMEs) Business, Commodity or Region Team First Name Last Name Location Email SSO Business Leader Verfied Business Aviation Jessica Hataway Cincinnati, Ohio jessica.hataway@ge.com 212422685 Aaron Burkhart Y Transportation Sven Verbroekken Fort Worth, TX sven.verbroekken@ge.com 102003752 Sven Verbroekken Healthcare Kimberly Thompson Nevada kimberlythompson@ge.com 212058017 Bret Estes Power Tara Wight Schenectady NY tara.wight@ge.com 200005079 Randy Rowe Renewable Energy Corporate Shawanna Brown Atlanta, GA shawanna.brown@ge.com 204045256 Energy Connections Hugo Rocha Garcia, NLE, MX hugo.rocha@ge.com 220027771 Jaime Robles Oil & Gas Esther Akindele Houston, TX esther.akindele@ge.com 208029314 Milosz Bieda Appliances & Lighting David Csaba Budapest, HU david.csaba@ge.com 120011739 Henry Nieman Global Research Center Anthony Sinopoli Niskayuna, NY anthony.sinopoli@ge.com 210070678 Gary Blond Commodities IT Habeeb Alaidroos Alpharetta, Georgia habeeb.alaidroos@ge.com 303029495 Sam Guertin MRO Ed Landry edward1.landry@ge.com 204024652 Mike Bennett Facilities Mgmt Ron Reed ronald.reed@ge.com 204008412 Utilities Bruce Foust Georgia bruce.foust@ge.com 204053712 Richard Tutela Logistics Charles DeCalonne charles.decalonne@ge.com 210068456 Mark Chadwick T&L/Fleet Jamie Blough jamie.blough@ge.com 210070542 Betty Sweetman Prof Services Srivani Nagavelli Hyderabad, Telangana, IN Srivani.Nagavelli@ge.com 502565377 Florence Imadali Labor Services Region ASEAN Hooi Keng Teoh Kuala Lumpur, Malaysia hooikheng.teoh@ge.com 212560598 Sanjeev Gupta India Kamaljit Singh Bangalore, India kamaljit.singh@ge.com 105058003 Tushar Cherekar China Melody Ma Shanghai, China melody.ma@ge.com 212369140 Jason Wang MENAT Mohsin Abdul Ghani Dubai, AE mohsin.abdulghani@ge.com 106003760 Hisham Zorgan SSA Catherine Idun Accra, GH catherine.idun@ge.com 106005662 Anne Jason Adilson Paulo Luanda, AO adilson.paulo@ge.com 212438117 LATAM Andre Araujo Rio de Janeiro, BR andre.araujo@ge.com 212522915 Carlos Milczwski Europe Fabrice Izzi Fabrice.Izzi@ge.com 106000462 Filip Mandic Russia Canada Mississauga, Canada Vivian Xiao ANZ Min-jung Lee Seoul Korea min-jung.lee@ge.com 305031039 Hee Ju Yoon Korea & Japan Hiroyuki Kohyama Hino Japan hiroyuki.kohyama@ge.com 305000538 Thanks to all the SMEs who have helped build the tool & design the spec!

Vision of the Savings Management Project From To Various tools with no global visibility of savings across P&L’s, Regions or GCL’s One tool with Global Visibility of savings across P&L’s, Regions or GCL’s Tool Inconsistent savings standard calculation across P&L’s, Regions & GCL’s Standard Consistent, standardized savings standard calculation across P&L’s, Regions & GCL’s Approval No formal individualized project approval process for within sourcing or finance teams Formal approval process with thresholds by business

Savings Categories 1 2 Category Components Financial treatment Deflation Price deflation/inflation Reconcile to ledger Usage -a) Usage reduction Reconcile to ledger New purchase Cost Avoidance Cost avoidance Inflation mitigation Cost Avoidance Rebates Track absolute cash amount Separate cash target for Rebates 1 2 Reconcile to ledger Cost Avoidance Year over year cost reduction driven by Sourcing. Savings align to income statement. P&L impact: Yes Reduction of spend that would have not occurred without Sourcing’s involvement. P&L impact: No (a- Savings recorded must have been driven by Sourcing

Reconcile to Ledger 1 Savings that deliver year over year cost reductions achieved through lower price or usage attributed to the activities of the Sourcing function. Deflation = (CY average price - Prior TY avg price) x CY annual volume Usage = (PY volume – CY volume) x PY average price These are the predominant formulas, please refer to Savings Standard document for more information. Guiding principles Reported savings must be led by the Sourcing function. Both inflationary and deflationary results of Sourcing activities must be recorded. Savings must be a year over year impact to the P&L. A baseline of 12-months spend must exist for deflation to be calculated. Savings can only be recorded for a maximum 12 month period. Sourcing savings from a business acquisition cannot be recorded until Year 2 until a clear GE baseline is established, the first year Savings will be cost avoidance. CY = Current Year TY = Total Year PY = Prior Year

Cost Avoidance 2 Savings that would not normally have occurred without the Sourcing team’s activities. Generally on a new to GE purchase where no baseline exists. Savings = (Actual Price – Average price of all initial bids) x CY annual volume These are the predominant formulas, please refer to Savings Standard document for more information. Guiding principles Reported savings must be led by the Sourcing function & be generated from activity such as: The completion of a competitive bid process for a new purchase The reduction of costs increases in an inflationary market CY = Current Year

Overview

2016 Process & New Process 2016 Process New Process Synergy Savings ISAR iSave Synergy Tracker Synergy Savings Synergy Savings

High-Level Goal & Process for Synergy Savings As-is To-be ISAR Tracker (Excel) iSave Spotfire (Reporting) Country Sourcing Teams to create projects in ISAR Tracker Create synergy projects in iSave, Tier 2 BU Sourcing mangers to validate Synergy Savings being reported in Spotfire Offline weekly tollgate review with Country Leader Drill down to lower tiers and track realized Savings as needed ISAR will be decommissioned and offline review will remain and will be scheduled with the Country Leaders

Key Process Definitions What are the different negotiation types? Business specific projects Negotiations that relate to a specific business only fall within the scope of Business specific projects. These are created/ initiated by the business sourcing teams. ***WILL NOT BE USED BY SYNERGY TEAMS*** Across-GE projects Negotiations that span multiple businesses and are being conducted to leverage the broadest company spend fall within the scope of Across-GE projects. Typically, these are initiated by the Global Commodity Leaders or the Regional Sourcing teams. Parent: Projects created by teams negotiating contracts on behalf of multiple business units. Parent projects once created are shared linked with the individual impacted business units through child projects. ***WILL BE USED*** Child: Projects which are created by the business units completing the actual purchase. Child projects are created after the parent projects are shared with business units. ***WILL NOT BE USED BY SYNERGY TEAMS*** What are the Savings stages? Idea Project idea generation with estimated Projected Savings during the planning session (OP, SII), no sourcing and/or business resource as required has been allocated 2) Planned Planned Savings amount is based on the latest projected value either from in progress supplier negotiations or usage activity in progress. Project is funded with resources from sourcing and the business as required and is executing Executed Projected Savings amount based on price negotiated in the contract and prior year annual volume or implemented usage reductions 4) Realized Savings calculated based upon actual received volume, usage and price, 3 months of PO data available

BU Approval Thresholds  Business Sourcing Threshold Finance Threshold   $ K Saving Healthcare 50 100** Aviation 250 Energy Connections Transportation 100 Oil & Gas Lighting 75 Power 200 500 Renewable Energy Corporate * * IT Project thresholds for sourcing and finance approval would be $ 500K ** Project owners to upload  supporting documentation for all projects irrespective of threshold Implement standard threshold once process is stable and consistent across businesses

Savings FX - Example Example Jan Feb April August Idea Planned Executed Realized Ideas during planning period Allocate resources to project Validation of savings with back up documentation Deal Signed Project Owner Example Sourcing approval Finance approval Jan Feb April August Zycus iSave User to Input numbers in EUR (local currency) 100k EUR 97k EUR 98k EUR 98k EUR Tool would automatically convert savings in USD and compare with the BU thresholds (already set in the tool). No manual conversion required.. Notes:. One project can only be designated in one currency irrespective of multiple regions/ countries. Project owner to determine base currency for the project and all regions/ countries would report savings in the same currency. Tool would use Op plan rates to convert Local currency into USD for comparison with USD thresholds.

Synergy Savings Process

Roles & Responsibilities Who Responsibilities Synergy Project Owner Project owners in Alstom legacy Indirect Sourcing teams Create Synergy Parent projects in iSave and share with Tier 2 BU sourcing managers, make sure the Savings at Tier 2 level is aligned with BU. Tier II BU Sourcing Manager BU Sourcing managers who have been involved in the Synergy tollgate review. Review the Savings at Tier 2 level, offline discussion with Synergy project owner if there is any discrepancies BU Sourcing Lead BU Sourcing leads who own lower level details Create Child projects to drill down to Tier 3 or Tier 4 levels, input realized Savings BU Finance Manager BU finance approvers Review and approve realized Savings Please contact for P&R: Tara Wight (200005079) and /or EC: Raymundo Magana (220019382) or Hugo Rocha (220027771) if you are not clear about the role you will play

Synergy Savings Process – New entries Zycus Idea & Planned Executed Realized 1 2 5 7 Create a parent project, input Executed Savings at BU Tier 2 level, attach the business case if above BU finance threshold Share the parent project with the BU Tier 2 Sourcing mangers Offline tollgate review with Tier 2 BUs Update the Savings in the parent project-b) Share the projects with sourcing leads Synergy project owner 4 Offline discussion with Synergy project owner if there are any discrepancies - a) Does the Tier 2 BU accept the proposed Savings? sourcing manager Tier II BU 3 N 6 Inform the synergy project owner on the sourcing leads’ names Y 8 9 10 BU sourcing lead Create child project, drill down to lower BU tiers, select finance approvers Input the Realized Savings amount in the child project Y Above the threshold? 11 N Auto approved 12 BU finance manager Finance approval (a – If the Tier 2 BU sourcing lead does not agree with the numbers, please DO NOT edit the numbers under the shared strategic module, but discuss with the project owner offline. (b – The update can be done either by Synergy project owner or the Tier II BU sourcing manager, the update will be reflected automatically in the other person’s screen

Synergy Savings Process- List of Managers List of Sourcing Tier 2 Managers to share your projects with once at Executed stage:

Synergy Savings Process- ISAR migrated projects For existing projects in a savings stage of Idea and Planned which were migrated from ISAR as Child projects: You can move these projects to a savings stage of Executed and Realized without sharing with the business. Instead, you would send directly to the business finance manager for approval, if above the threshold. Below the list of Finance Managers by Business and Region to share your projects with once at Realized Stage

Synergy Savings Process- Summary   Project type Below Finance Threshold Above Finance Threshold ISAR-migrated Realized Child Leave as is ISAR-migrated Executed If 3 months of PO data available, move to Realized stage, auto-approved, no need to share project If 3 months of PO data available, Attach Business Case, move to Realized, send for approval to the Business Finance manager ISAR-migrated Idea or Planned If contract signed or PO available, move to Executed, no need to share project If contract signed or PO available, Prepare Business Case, move to Executed, no need to share project at this stage, will be shared with finance at next stage New Entries Parent Follow the Synergy Process presented in slide 18, create parent project and once Executed, share with Business to create the child project Follow the Synergy Process presented during the trainings, create parent project and once Executed, share with Business to create the child project, attach Business case

iSave & Spotfire: Access and Support

Accessing iSave ❶ Preferred Browser Settings ❷ Link to iSave: https://ge.zycus.com/tms/user/homepage.tms Click on iSave icon ❸ Request a iSave Account Complete the iSave user access form https://ge.box.com/v/iSaveUserAccessForm Send to Sheena Anthony (sheena.anthony@ge.com) Sheena will forward completed form to tech-support@zycus.com IE Version# 10 & 11 Firefox Version# 22.0 plus Chrome Version# 34.0 plus Safari Version# 5.1.0 plus

Where can I find iSave materials? iSave Portal! Link: https://gecorp.custhelp.com/app/iSave/home

Spotfire Access Link: http://sc.ge.com/*IndirectSourcingOps Login using your SSO credential, default credentials as below: Username: SSO ID Password: SSO Password Don’t have access to Spotfire? Send an email to Nizam Cs (nizam.cs@ge.com) with your name and SSO.

iSave Live-Demo

Questions?