GE Investor Update

We are excited to host GE’s 2023 Investor Conference at the GE Aerospace Customer Technical Education Center in Cincinnati, Ohio starting at 7:30am ET today. You can access a live webcast of the presentations, as well as accompanying slides and press release, on our investor website here.

The event will be led by Chairman and CEO, GE and CEO, GE Aerospace, Larry Culp and CEO, GE Vernova, Scott Strazik who will be joined by other members of the GE Aerospace and GE Vernova senior leadership teams. During our presentations today, we will focus on our two businesses and how they are well-positioned to stand on their own sometime in early 2024.

GE Chairman and CEO H. Lawrence Culp, Jr. said, “The future is bright at GE. We are operating from a stronger foundation and as a fundamentally simpler business that is creating significant value today and going forward. GE Aerospace is defining flight for today, tomorrow, and the future with our differentiated technology and extensive service capabilities. Looking ahead, we expect that over the long term this business will deliver mid- to high-single-digit organic revenue growth and continued margin expansion with free cash flow in line with net income.”

Culp continued, “And at GE Vernova, we are uniquely positioned to electrify and decarbonize the world while driving toward long-term profitable growth. We expect the business to generate mid-single-digit organic revenue growth and high-single-digit profit margin with strong free cash flow conversion over the long term. It is a new era at GE, and our businesses are creating value for customers and shareholders while preparing to stand on their own sometime in early 2024.”

Our leaders are excited to share the critical roles our teams are playing to support our customers – with GE Aerospace defining the future of flight and GE Vernova electrifying and decarbonizing the world. We also are providing additional supporting details about our 2023 guidance and long-term outlooks for both businesses (on a current GE reporting basis vs. the stand-alone business definition post-spin).

GE Aerospace, led by Larry, will discuss our leading position in attractive, growing commercial and defense sectors. We’re defining the future of flight for today, tomorrow and the future with differentiated tech and services. Our deep engineering expertise underpins the unique products and services we offer, as we’re pioneering future flight technology to decarbonize, lower cost and support mission readiness. We’re running this business with greater focus and our teams further embedding lean and decentralization, positioning Aerospace to drive sustainable cash generation with low capital intensity, as well as long-term profitable growth.

GE Vernova, led by CEO Scott Strazik, will share how we are uniquely positioned to support customers through the energy transition, the financial strength of Power’s vast installed base, and the transformation and secular tailwinds at Renewable Energy. Power is on its way to low double-digit margins and >100% FCF* conversion in ‘24 led by Gas Power. At Renewable Energy, we’re seeing increased visibility into orders and profit at Onshore Wind, are focused on improving Offshore Wind, and expect Grid to be modestly profitable in ‘23 with demand accelerating. With lean driving productivity, secular demand tailwinds accelerating, and existing and new products strengthening our portfolio, we are focused on driving higher profit and FCF*, with a significant inflection point ahead in 2024.

Separately, I wanted to share some changes to our Investor Relations team.  We recently announced that Jen Griffin, who has served as a key part of our Investor Relations team, has been named FP&A Leader for GE Aerospace. I’m also happy to share that Blaire Shoor’s role on the team is expanding to assume most of Jen’s responsibilities. Additionally, I’m happy to share that Michael Lapides, who spent the greater part of the last two decades covering Power and Utilities at Goldman Sachs, recently joined the Investor Relations team, and will become my counterpart as the Investor Relations leader for GE Vernova.

We look forward to sharing with you shortly what’s next for GE and how we will continue to create value for our customers, shareholders and employees.

As always, in the spirit of lean, we welcome and highly value any feedback on today’s event. Thank you for your interest in GE.

Steve

This document contains "forward-looking statements." For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see here.

*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our earnings releases, the appendix of the presentation for our 2023 Investor Conference and our annual report on Form 10-K for the year ended December 31, 2022.