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GE – Aviation

Investor RelationsMiddle East

November 2006

Muhammad Al-Lamadani

GE International

2GE – Aviation11/27/2006

GE Proprietary

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010

Saudi

UAE

Kuwait

Qatar

Bahrain

Iraq

Oman

Egypt

Middle East aviation growth is strong

6%-8% p.a.Traffic Growth

~80 by 2010 (+5%)New Airports

3.0% p.a.Pop. Growth

318M p/a (+292%)Pax Capacity

~ 130 millionPopulation

~ 4% p.a.GDP Growth

Growth Indicators

• High oil prices and cash driving

investments and economic growth

• Mix of national carriers, fast growth

airlines, and slowly emerging LCCs

• Aging fleet replacement & capacity

increase driving high aircraft orders

• $74B 10-year market for commercial

airplanes in ME (2006-2015)

• Over $23B in airport projects by 2012

• Outsourcing engine services preferred

Nominal GDP Trends(US$ Billions)

Source: Global Insight, WTO, FTAO, CIA world fact book, WMMR ‘05

Eight countries will account for over

90% of Middle East GDP in 2010


GE Proprietary

Africa

7%

N America

6%

Middle East

16%

Europe

34%

Asia

37%

50

125

200

275

350

425

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Regional traffic is trending upward

• Significant traffic growth (12.6% in ‘05) generating increase in capacity

• Middle Eastern carriers topping aviation industry in cargo growth

– 16.8% growth in Freight Tonne Kilometers, 2006 vs. 2005

– 14.1% gain in ’05 vs. global cargo growth of 2.6%

– 8.8% growth expected between Middle East and Asia

RPKs (Billions)

RPK Actual RPK Forecast

Annual expected growth in the Middle East: 6-8%

Transit hub between Europe and Asia

Middle East Air Traffic…

Source: Global Insight, WTO, FTAO, CIA world fact book, WMMR ‘05


GE Proprietary

24.40%

8.20%3.50%

6.90%

40.90%

4.30%

12.20%

EK GF KU MS QR SV TK

Compound Annual Growth Rate (CAGR)(2002-2006)

72

36

58

96

140

46

32

12

8

56

20

30

44

10

26

24

16

22

24

162

14

14

34

4

20

24

2

16

4

10

12

24

SaudiArabian

Em irates Gu lf A ir QatarAirways

Kuwa itA irways

THY Egypt A ir Etihad RoyalJordanian

262 21 8 7 6 94 60 224 86 44 46

CFMGE

IAEPW

RR

Nine ME airlines own 46% of AC and 44% of engines … indicating growth leaders

Route development to Europe and Asia will drive more aircraft orders

• Emirates fleet growth…91 AC today, ~150 within 5 years

• Qatar fleet growth…47 AC today, ~110 within 10 years

• Saudi Arabian fleet growth…106 AC today, ~135 within 5 years

Key Operators … 1110 engines, 475 AC

ME Total … 2525 engines, 1026 AC

Source: ACAS, Oct 2006

CFM International is a 50/50 joint company between GE and Snecma

Saudi Saudi EmiratesAirlinesEmiratesAirlines QatarQatar


GE Proprietary

GE - Aviation … the business modelas reflected in the Middle East…

Emirates GE90/GP MRO

Qatar Tech Center

DAE partnership

Help our customers grow

Orders to-date (‘05-’06)

GEnx … 73 engines

GE90 … 124 engines

Differentiate with technology

OnPointSM Solutions…

$601M Wins YTD

>$5B in CSA backlog

Win lifecycle service

108 commercial engine deliveries YTD*

Grow installed base

* 42 YTD deliveries for CFM, 66 YTD deliveries for GECFM International is a 50/50 joint company between GE and Snecma

GP7000 (EA) is a 50/50 JV between GE and Pratt & Whitney


GE Proprietary

Successful regional penetration

Kibris Turkish

TurkmenistanIstanbul

ARAMCO

AMC

Al-

Tayar Group

Mahan Air

Midwest Airlines

Mid East Jet

Biman

DHL BahrainEgypt Air Force

Air Kazakhstan

Oman Air

Turkish Air Force

Saudi Oger

Yemen

Saudi Arabian

Kuwait

EgyptAir

Turkish

Royal Jordanian

Qatar

Gulf Air

Iran Air

Palestinian

Nationa

l Air Service

s

ALAFCO

Azerbaijan

Jordan Aviation

Jazeera


GE Proprietary

Winning with GE/CFM technology

CF3410%

GEnx

29%

CF63%

CFM5644%

GE9014%

Key Wins in ‘06

Pending *


Opportunities

* Refers to GE engine wins, that are not officially scored by airframer yet.

** Proprietary campaigns/operators.

Source: Siebel and GE data

240 New Engine Wins in ’06 (YTD)

747-840GEnxEmirates

777-200LR/F16GE90

Qatar 777-300ER28GE90

747-88GEnx

78712GEnxK100 **

EMB17012CF34Egypt Air

737-80012CFM56

A32012CFM56ALAFCO

A/C TypeEnginesModelOperator

A32020CFM56Al-Tayyar

787

747-810GEnxAbu Dhabi Amiri

747-88GEnxQatarA350/787120GEnxQatar

Various120GE90/GEnx/CF6Kuwait

78746GEnxS101 **

777-200LRF

777-300ER46GE90S100 **

A350/787100GEnxEmirates


GE Proprietary

PW

2%IAE

9%

RR

14%

EA

14%

GE

51%

CFM

10%

CFM

9%

RR

28%

GE

45%

PW

18%

RR

9%

IAE

24%

CFM

36%

PW

31%

Expanding installed engine population

Narrow Body 540 AC

1253 Engines

Wide Body 467 AC

1228 Engines

Key Operators (AC)• THY (82)

• Saudi Arabian (36)

• Iran Air (26)

• Egypt Air (21)

Key Operators (AC)• Emirates (91)

• Saudi Arabian (61)

• Qatar Airways (32)

• Iran Air (31)

Source: ACAS, Oct 2006


GP7000 (EA) is a 50/50 JV between GE and Pratt & Whitney

Current AC in operation

• Delivering more commercial engines

• Maintaining competitive advantage

• Winning the material stream

• Growing with JV relationships

TOTAL 285 AC

758 Engines

Order backlog

737 family (266 Engines)

A320 family (118 Engines)

A340(164)

CF6 (352)

GE90 (102)

737s (46 Engines)

A320s (26 Engines)

CF6 (18)

GE90 (106)

GEnx (40)A380

(180)


GE Proprietary

Increasing lifecycle service backlog

GE9031%

GEnx49%

CT71%

CF342%

CFM5617%

Wins in ‘05 $1.3B in CSA’s

$601M Wins YTD ~$1B expected for ’06

Key Wins in ’06~90% of YTD wins

Opportunities~$940M in value

Source: Siebel and GE data


Services Services -- > $5B> $5B(overall backlog)(overall backlog)• OnPointSM Solutions

• Time & Material

• On Wing Support

• Tech Upgrades

• Diagnostics

EnginesModelOperator

14CFM56AMC

10GE90Etihad

40GEnxEmirates

58GE90Saudi Arabian

EnginesModelOperator

40CFM56Al-Tayyar

44GE90Qatar

14GE90Emirates


GE Proprietary

Partnering with key customers

• Emirates GE90 and GP7000 MRO facility

– Includes world’s largest indoor test cell (150lbs thrust)

– Module shop capability

• Qatar Technology and Learning Center

– Customer Aviation Training, including military systems

• Dubai Aerospace Enterprise partnership development

Using GE processes & tools…to help customers in:

• Lowering cost of ownership

• Improving their profitability / value

• Enhancing productivity through Six Sigma & Lean

• Leveraging GE-style leadership development courses


GE Proprietary

• Investing in technology

• Growing installed base

• Winning in the Middle East profitably

• Expanding services offerings

• Delivering on customer productivity and satisfaction

'04 '06E

Revenue

OP

$2.2

$11.1

$11.9

GE – Aviation…aligned for growth

'05

$2.6

~$12.8

~$2.9

~10%

~15%

Structured to capture significant growth potential worldwide

GEAviation

Muhammad Al-Lamadani

GE International

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