GEInfrastructure

2

Invest & deliver

Revenue Earnings Returns

2-3XGDP

10%+

20%

Invest in leadership businesses

Growthas a

process

Reliable execution & financial discipline

Great people & team

Safe & reliable growth company

“Built for the future”

+ Infrastructure technology + Demographics+ Developing markets + Value from liquidity+ Digital connections + Scarcity/environmental

3

Infrastructure evolution

'95 '00 '05 '07F

Netincome

Revenue

$16

$1.3

($ in billions)

11%CAGR

16%CAGR

For investors: reliable growth over time … return on total capital 30%+

� Invest through cycles … technology, service, capabilities, & new adjacencies

� GE leaders build successful long term businesses

4

Environment …

Industry remains strong … 1H traffic +6%

International strength continues

NA RR traffic (3)% … International & mining strong

Increasing depletion rates … drilling activity ����

Desal market growing … chem market @ GDP+

Aviation

Energy

Trans

Oil & Gas

Water

�

�

�

�

�

� Multiple European orders … Spain, Russia, France, Greece

� 1H Aircraft orders up 2X

Continued strength across the board

� 1,110+ ’07 locomotive orders

� Subsea expansion accelerating

� $1B global project wins year to date

5

CSA backlog ~$95B end of ’07 Service margins +3pts in ‘07

Strategic sourcing Lean execution

Infrastructure strategy & execution

Grow lifecycle service: CSA / upgrades / IT inspections & repairs

“Global best cost”

Maximizing segment synergies … delivering to our customers

Int’l Rev … ~$46B by ’10 ME $8B, LA $5B, China $3B

Globalization … focus on emerging markets

R&D spend ~$2B per year Ecomagination … $16B by ‘10

Differentiate with technology

Technology … Vetco & Smiths Non-installed base services

Capitalize on adjacentmarkets & products

6

Differentiate with technology

GE90

9F

EVO/AC4400

Invest ~$2B R&D annually … ~70K installed base units

Now Next

GEnx Hybrid loco

Subsea

LEAP 56-a)

Desalinization

(a- Leap56 is a TM of of CFMI,CFM is a 50/50 joint company between GE and Snecma

Wind

IGCCNuclear

7

Fuel price

Oil: ~$70 – 80 / barrelNG: ~$5-8 / mbtu

Providing increased customer value

Fuel efficient technology

Today

Aviation� Genx 20% fuel savings

� LEAP 56TM~20% fuel

Transportation� EVO locomotive

� Hybrid locomotive …~10% fuel savings

Energy� Jenbacher engine

LEAP56TM is a trade mark of CFM, a 50/50 joint company between GE and Snecma

* Compared to CFM56 Tech Insertion (certified in 2007)

Installed base improvements� Fuel upgrades

� Performance packages

8

Play big themes: ecomaginationsm

• Surpass expectations … revenues & margins

• ~40 products in process for ’07 – ’10

ecomaginationsm

'06 '10F

~$16+($ in billions)

Using scale, imagination to drive growth

Hybrid loco

Global desalination

• 10% fuel savings … 10% emission reduction

• Launch ‘10

• Current installations provide 2B gallons/day

• $300MM revenues by ’10

Revenue

GEnx

~$9

• Low fuel burn … 20% efficiency improvement

• > $1.3MM annual savings per aircraft

~17%

CAGR

9

• 25% reduction in building electricity consumption

or

• 800 coal plants with CO2 capture

or

• 700x current installed solar power capacity

or

• All existing cars running on biofuels

20552005

14

7

Global tons carbon/year (billions)

0

Projected growth

Historical

Focus on “carbon management”

CO2 legislation / “carbon cost” inevitable

1B tons of carbon/year

Source: Princeton Univ.

10

GE participation … today & tomorrow

Efficiency Low carbon power Low carbon fuels

Forests & agriculture

Buildings (2)

Transport (2)

Coal Plants (1)

Base Load (2)� IGCC Cleaner Coal� ESBWR Nuclear

Renewables (2)

Natural Gas (1)� Large-Frame Turbines� LM Turbines� Energy Finance

CO2 Capture (2)� BP H2 Joint Venture� Synfuels Technology

Biomass (1)� Energy Finance� Water Treatment

Fuel Cell H2 (1)

Broad GE participation

� Water Treatment� Appliances� Lighting� Energy Finance

� Aircraft Engines� Locomotives� Equipment Svcs.� Aviation Finance

� Energy Services� Water Treatment� Energy Finance

� Wind Turbines� Solar Power� Biogas Engines� Energy Finance

5B tons of carbon/yr 5B tons of carbon/yr 4B tons of carbon/yr

2B tons of carbon/yr

11

1620

15

26

'07E '10E

~$31

~$46

Globalization

Revenue

~14%CAGR

($ in billions)

Utilize strengths for expansion … emerging markets key

Emerging

Developed

Focus … strategic imperatives

• Commercial presence

• Engineering capability

• Local production assets

• In-country services

• Financing support

• Government relations expertise

~

~ ~

~

12

+23%CAGR

$5$8

$3 $5

Emerging markets … lots in play

Middle East

($ Revenue in billions )

Emerging markets key

Latin America

2007 2010 2007 2010

� Energy … regional employment 2X

� Transportation … Egypt, Libya loco deals

�Water … Bringing plants on line, structured projects

�Oil & Gas … Large installed base … service facility

� Energy … 2x Mexico engineering resources

� Transportation … loco assembly & service shops

�Water … Local chemical presence

� Aviation … Celma engine service shop

� Oil & Gas … Local manufacturing (VetcoGray)

+10%CAGR

13

Services growth

• CSA backlog ~10% in 2007 … ~$95B

• Services margin increasing ~1 pt. per year

• Non-installed base services increasing

$23~$25

Service revenues

Marginrate

Revenue

28%~31%

($ in billions)

Foundation for multiple years of strong organic growth

Energy ~3K ~$50

Aviation ~23K ~40

Transportation ~17K ~10

Oil & Gas ~28K ~10

’07Eunits

’07-’10Frevenue

~9%

Installed base

2006 2007

14

Abu DhabiJV, India

Nigeria JV, Japan

JV, Indonesia

JV, ChinaSpain

McAllen,TX

JacksonvilleHouston

Cincinnati

UK

Hungary

Saudi Arabia

Singapore

Algeria

Qatar

Edmonton Florence

Houston

Turbimeco

Trinidad

Increase capability + reduce cost = growth

3 independent businesses ���� 1 global Infrastructure network

Gas turbine repair network

'07E '10E'07E '10E '07E '10E

Sales % LC Pole Cost/Hr

$1.3B$1.9B

40%

65% $69$59

• 22 dedicated shops

• 11 dedicated shops

• 9 shared shops

• 2 shops closed

• McAllen pilot underway

… Hungary next

�

From …

To …

15

'04 '07

Supply chain environment

3X

Strengthening low-cost supply chain critical

Material inflation - $/lb

(a-Source: IMF, WBMS, Antaike, Macquarie Research June 2007

'04 '07Copper Rhenium

China’s share of commodity growth

5765 71

93 93

Alum

Steel

Nickel

Copper

Zinc

100%

0%

Global growth % ‘00 – ‘06

Copper consumption per capita since 1950 –a)

02468101214

kg/person

1950 2006

Copper demand outlook

Japan

Korea

China

India

6X

16

Supply chain strategy

Key initiatives

Initiatives geared to drive best cost position

� Low cost sourcing

� Material cost out

� Engineering design out

� Capital efficiency

� Low cost/best cost footprint

� Supply base investments

’07 Infra direct material buy

Energy

Aviation

Oil & Gas

Transportation

Water

Total

~$11

~7

~4

~2

~1

~$25

($ in billions)

People

Capital

17

Driving material cost out

Imperatives Low cost country content %

� LCC sourcing

� Logistics

� Localization

� Order-to-remittance

� Supplier strategy

� Product planning

� Substitution of material types

� Lower cost fabrication

Multiple approaches

Material productivity

~$325MM~1.6%MCP

Evo

GE90

9FB

18%

18%

11%

~51%

~22%

~14%

’07E

~$2B ’07E LCC spend

‘07 ‘10

18

Driving capital efficiency through supply chain execution

Lean ���� capacity & efficiency

Reducing turbine blade cycle time … CFM � 13 days

Creating wind capacity … +6X volume by ‘08

EVO production � ~10 days … > 900 locomotives

GE � Vetco 4X additional riser output

Driving integration ... aligning processes ...

~50% proposal cycle time reduction

Aviation

Energy

Trans

Oil & Gas

Water

19

Operational scale

Potential to create ~$1B value

LEAP56TM is a trade mark of CFM, a 50/50 joint company between GE and Snecma

* Compared to CFM56 Tech Insertion (certified in 2007)

+1% VCP +1% Material deflation

~$350MM ~$300MM ~$80MM

+1% BCP

~47K hourly

employees~$25B Direct

material buy~$4B SG&A

20

Expand into adjacencies

Capture horizontal market value …

Revenue

‘00

Next:

Power storage

Subsea processing

Turbo prop

Business jets

Solar …

and more

‘07E

$30

~$55-57

($ in billions)

~$12

~$43-45

Renewables

Subsea production

Water

Rail IT

Avionics

Optimization & control

Environmental services

Gas engines

21

Cost + strategic synergies

Creating synergies across businesses

Synergy initiatives

� Common service networks

� Shared direct & indirect buys

� Common warehousing

� Repair technologies

� Commercial cross selling

� Common G&A functions

Energy

Connecting the dots

Aviation

GECASEFS

Oil & Gas

Transportation

Water

22

GE Infrastructure

~15-20%

~20%+

2006 2007

Revenue

Segment Profit

$9.0

$47.4

On track to deliver ‘07 commitment

($ in billions)Business summary

• Capitalizing on strong market trends

• Investing & winning with great technology

• Expanding globally … emerging markets

• Growing services & adjacencies

• Operating excellence … lean & cost out

• Creating synergies across businesses

23

Agenda

Aviation & GECAS Scott Donnelly (President & CEO GE Aviation)

David Joyce (VP & GM Commercial Engines)

Scott Ernest (VP & GM Global Supply Chain)

Henry Hubschman (President & CEO Aviation Services)

Energy & EFS John Krenicki (President & CEO GE Energy)

Steve Bolze (VP & GM Power Generation)

Dan Heintzelman (VP & GM Energy Services)

Alex Urquhart (President & CEO Energy Financial Services)

Oil & Gas Claudi Santiago (President & CEO GE Oil & Gas)

Transportation John Dineen (President & CEO GE Transportation)

Water Jeff Garwood (President & CEO GE Water)

Break

Infrastructure overview John Rice (CEO GE Infrastructure, Vice Chairman GE)

Lorraine Bolsinger (Vice President Ecomagination)

Business update Keith Sherin (CFO GE, Vice Chairman GE)

GEInfrastructure