GEAviation

Scott C. DonnellyPresident & CEO

2007 Paris Air Show

2GE – Aviation

Paris Air Show 2007

This document contains "forward-looking statements" – that is, statements related

to future, not past, events. In this context, forward-looking statements often

address our expected future business and financial performance, and often contain

words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or

"will." Forward-looking statements by their nature address matters that are, to

different degrees, uncertain. For us, particular uncertainties arise from the behavior

of financial markets, including fluctuations in interest rates and commodity prices;

from future integration of acquired businesses; from future financial performance of

major industries which we serve including, without limitation, the air and rail

transportation, energy generation and healthcare industries; from unanticipated

loss development in our insurance businesses; and from numerous other matters of

national, regional and global scale, including those of a political, economic, business,

competitive or regulatory nature. These uncertainties may cause our actual future

results to be materially different than those expressed in our forward-looking

statements. We do not undertake to update our forward-looking statements.

3GE – Aviation

Paris Air Show 2007

What’s new since Farnborough

• ’06 op profit up 13%, 1Q07 op profit up 17%

• Smiths closed May 4th, expanding “beyond the engine”

• GEnx is the fastest selling big engine in GE Aviation history, passed 850 units

• Aviation utilization is strong … 1Q07 commercial spares up 20%

• Congressional reviews in progress on F136 program

4GE – Aviation

Paris Air Show 2007

Fuel ($ / gallon)(1Q Average)

$1.84 $1.78

7.0%

5.4%

2.7%

1Q06 1Q07

5.9%

Aircraft orders(Airbus & Boeing)

323

1Q06 1Q07

266

Pax capacity & traffic growth(1Q07 over 1Q06)

Cargo capacity & traffic growth(1Q07 over 1Q06)

ASK RPK

ATK RTK

Sources: International Air Transport Association (IATA), US DOE, Airbus, Boeing

Aviation industry is strong

5GE – Aviation

Paris Air Show 2007

0 – 10%10 - 20%20 - 30%

China16%

Americas 5.7%

Europe 5.3%

Asia 4.6%(w/o India & China)

MEA15%

India28%

Industry strength expected to continue‘06 revenue passenger mileage growth

6GE – Aviation

Paris Air Show 2007

Aviation business model

~70% of GE & CFM orders from non-US customers

Everywhere in the world

GEnx … 850+ engines to-date

Differentiate with technology

$39B CSA backlogWin life-cycle service

1,747 commercial deliveries in 2006

Grow installed base

(a- 1,055 ‘06 deliveries CFM, 692 ‘06 deliveries GECFM is a 50/50 joint company between GE and Snecma

(b- Commercial + Military CSA backlog

–a)

-b)

7GE – Aviation

Paris Air Show 2007

Aviation portfolio

$3.8 $5.9 $3.5

(a- Includes GE’s 50% of CFMCFM is a 50/50 joint company between GE and Snecma

(b- Systems & Unison Engine Components on Smiths ’06 fiscal calendar

$0.8

Digital Systems Electrical Power Mechanical Systems

Unison Engine Components

$0.2 $0.8 $0.6

A leading aviation technology business

Commercial Engines

Commercial EngineServices

Military Engines & Services

($ in billions)

’06 Rev

’06 Rev

Systems

–a)–b)

–b)

8GE – Aviation

Paris Air Show 2007

GE + Smiths – B787

• Simpler maintenance

• Weight savings + LRU reduction

• Reduce A/C production cycle time

• Intelligence to manage complex systems

• Faster time to market for upgrades

Common core computing

Common core – remotedata concentrators

Leading/trailing edge actuators

Landing gear actuation &Controls / brakemonitoring

Nose gear steering controls

Flight deck interface /flight voice recorder

Flight datarecorder

GEnx

Expanding capability “beyond the engine”

9GE – Aviation

Paris Air Show 2007

Additional growth opportunities

Target systems

• Flight control actuation

• Landing gear systems

• Electric power systems

• Integrated modular avionics

• Flight management

• Flight data recorders

• Video processing

• Vehicle health monitoring

• Aero structures

Platform

PotentialShip-set

A350XWB

Airbus ANSR

Boeing 737RS

$2.7

$1.0

$1.0

($ in millions)

(a- excludes engines

–a)

10GE – Aviation

Paris Air Show 2007

4.38.2

14.64.6

12.6

21.9

Product lineage Commercial installed base (K)

Fleet in active commercial serviceSource: ACAS, GE internal studies

GP7000 developed by GE/P&W Engine AllianceCFM International is a 50/50 joint company between GE and Snecma

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

Commercial … win with technology

1971

1979

1992

1995

2008

Next

2008

CF6

CFM

CF34

GE90

GEnx

LEAP56TM

GP7000

EA‘96 ‘06 ‘16F

GE

CFM

11GE – Aviation

Paris Air Show 2007

Tech investment … family additions

*GP7000 developed by GE/P&W Engine Alliance**HF118 developed jointly by 50/50 JV between GE & Honda

Service ‘05

EMBRAER 190 CF34-10

ARJ21 CF34-10

Service ‘09

Boeing 777-300ER GE90-115B

Service ‘04 Service ‘08

Boeing 787 GEnx

GE/Honda** HF118

Service ‘08

Airbus A380 GP7000*

Service ‘04

747-8 GEnx

Service ’09

Highest R&D commitment in history … $7B since 2000

’03 ’05 ’06

Total R&D

$0.9$1.1

$1.2

($ in billions)

Service ‘10

12GE – Aviation

Paris Air Show 2007

Invest … grow installed base

1996 2006 2016F

25,000

15,000

10,000

5,000

CFM PW RR IAEGE CFM PW RR IAEGE CFM PW RREA IAEGE

Fleet in active commercial serviceSource: ACAS, GE internal studies

1,200 of 2,100 current year adds CFM (including spare engines)CFM International is a 50/50 JV with Snecma EA is a 50/50 JV between GE and Pratt & Whitney

Commercial Engines

20,000~2,100 additions

in 2007

13GE – Aviation

Paris Air Show 2007

CFM56 … world’s most popular engine

Highlights

• 33-year JV with Snecma

• 998 new engine wins through May ’07

• Key wins at Air Berlin, Air China, Air One SpA,

Ryanair, SALE, Skybus, SpiceJet & TUI AG

German

• ~1,000 cumulative upgrade orders

• CFM56 Tech Insertion entering service

Focus

• Support … ~12,600 commercial engines around the world

• Production ramp up … ~1,300 engines per year through 2010

• LEAP56 … define and validate technologies for future

CFM International is a 50/50 joint venture with Snecma

LEAP56TM is a registered trade mark of CFM

TM

14GE – Aviation

Paris Air Show 2007

GE90 value … ask airlines that fly it

Highlights

• GE90-115B ~ 3 yrs in service, 1 million flight hours

• ZERO in-flight shutdowns

• More than 750 GE90-115B engine wins since 2000 … 116 May 2007 YTD

• 28% more fuel efficient per seat, 23% lower seat mile cost

• Guinness Book of World Records … highest thrust

15GE – Aviation

Paris Air Show 2007

Embraer 190

Bombardier CRJ705

CF34 … now a 70-110 pax game

• 230 CF34 Embraer jets in service

• 1.5MM hours of engine operation

• EMB195 at Flybe since October ‘06

• 500+ engines to be delivered to Embraer over next 3 years

• 1,400 CF34 CRJs in service

• 35MM hours of engine operation

• CRJ1000 launched February ’07, 38 firm orders

• CRJ700 -8C5B1 fleet upgrade delivering customer valueEmbraer 190Bombardier CRJ1000

16GE – Aviation

Paris Air Show 2007

CF6 … continued strong demand

• Middle of the market interim lift … 767 and A330 bridge to 787

• 74 new engine wins through May ’07

• CF6-80C2 win at UPS (27 767-300ER freighters)

• Customers recognize value & reliability

• Delivered more than 5,600 engines to date,

trusted for over 300 million flight hours

• Tech CF6 set to launch in 4Q07

17GE – Aviation

Paris Air Show 2007

• Wins for 68 GP7000 powered aircraft

• Significant hub to hub advantage … cost & capacity

• Certified December 2005 … A380 flight test 3Q06

• First Emirates ship set in Toulouse for installation … performance better than spec

GP7000 certified … taking flight

GP7000 developed by GE/P&W Engine AllianceEA is a 50/50 JV between GE and Pratt & Whitney

18GE – Aviation

Paris Air Show 2007

GEnx … balanced system design

• 50% lower emissions (NOx) than previous generation

• 50% lower noise footprint

• 15% fuel efficiency improvement

• > $1.2MM annual fuel savings per aircraft

Accepted in the market

850+ engine wins to-date

GAP

19GE – Aviation

Paris Air Show 2007

• Fuel burn … 10 - 15% better

– Lightweight / composite structures

– Component technology

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

LEAP56 … foundation for the futureTM

• Maintenance cost … 15% lower

– Lower parts count

– Longer life-limited parts

• Environment

– 60% lower emissions (NOx)

– 10 – 15 dB lower noise vs. current regulations

20GE – Aviation

Paris Air Show 2007

Relative to Rolls-Royce engine applications*

(2)

(4)

(6)

A33

0-20

0

A33

0-30

0

767-30

0ER

747-40

0

777-20

0(5k nm

)

777-20

0ER

(5k nm)

A38

0-80

0(6k nm

) **

Delta Block Fuel (%

) (5.2)

(1.4) (1.3)

(2.0)

(3.2) (3.2)

787-8

Aircraft CompanyPublished Data Aircraft company

published report

GE engines … more fuel efficient

(0.8)

GE A

dvanta

ge

GE A

dvanta

ge

GE assessment

(2.3)

* @ 3000 nm unless stated

787-9

(1.0)

(2.3)

Advantage increases with range

(0.5)

** A380-800 powered by Engine Alliance, a JV b/w GE and Pratt & Whitney

21GE – Aviation

Paris Air Show 2007

Support … we build our reputation on it

• Keep 8,200 GE and 12,600 CFM engines flying

• The expertise

– 150 field service engineers

– 4,000 GE engineers

– Full technical resources of GE

• The tools … Lean & Six Sigma

– Improving profitability & value

– Lowering cost of ownership

-CFM International is a 50/50 joint venture with Snecma

22GE – Aviation

Paris Air Show 2007

Grow services opportunities

40+ Years

Parts and Services

7X

Design and testNew

engines

0

GE90

CF6

CF34

CFM

GEnx

GP7000

Engine lifecycle revenue Average fleet age 8 years

CFM International is 50/50 joint venture with Snecma GE/P&W Engine Alliance is a 50-50 JV between GE and Pratt & Whitney

~40% of GE & CFM engines have not had first shop visit

23GE – Aviation

Paris Air Show 2007

Customized service agreements

‘01 ‘05 ‘06

• Evolve with customer needs

– OnPointSM new offerings

– Reduce customer cost

OnPointSM backlog

$38

$24

$34Frontier KLMFedExSouthwest China

Southern

• Solid customer base

Emirates Air AsiaAlaskaRyanair Singapore

• Win with growing carriers

($ in billions)

24GE – Aviation

Paris Air Show 2007

• Improved fuel burn

• Lower maintenance • Lower noise &

emissions

~2015+CFM56 Technology Evolution

CFM56-7

CFM56-5B/P

Gen 1& 2 Gen 3 Gen 4

Technology roadmap … customer value

CFM56-3 CFM56-5

CFM56-5C CFM56-5B/3CFM56-7B/3

LEAP56

• Advanced composites

• Improved fuel burn• Higher stage loadings• Lower noise & emissions

• Lower maintenance

1984

Infusing technology into previous generations via upgrade programs

Tech Insertion LEAP56TM

25GE – Aviation

Paris Air Show 2007

Helping customers win … upgrades

• Chosen by the world’s leading airlinesCustomer benefit

• Continually developing new upgrades

1999 GE90 3D aero kit

2000 CF6-6 turbine

2002 CFM56-3 TOW kit, CF6-50 turbine

2003 CF6-80A / C2 turbine

2004 CFM56-5C / P

2005 CF34-8 upgrade

2007 CFM56-5B / -7B Tech Insertion, Tech CF6Savings over ~10 years

Maint. cost

Fuelburn

Residualvalue

Total cash

savings

~$1.1B

CFM International is 50/50 joint venture with Snecma

KLM EmiratesSouthwest

Air China Alaska Airlines

FedEx

China Southern Continental vivaAerobus

LAN

26GE – Aviation

Paris Air Show 2007

Approach on alternate material

• Delivering customer value

–OnPoint Solutions, 30% of fleet & growing

**CFM International is 50/50 joint venture with Snecma

• Reducing cost of ownership

–More repair & used material … GEAM and The Memphis Group

• Build upon diagnostics proprietary database

• Technology upgrades

– Reduced fuel burn & emissions

–Operating savings and improved residual value

60%

76%

Others OEM OEM w/tech

100%

CFM56-3 cost ($/EFH) experience

27GE – Aviation

Paris Air Show 2007

’03 - ’0613% CAGR

Services

Engines 2.5

4.2

3.5

4.9

$9.7

‘03 ’06’05

$8.4

$6.7 4.1

5.6

Strong commercial outlook($ in billions)

• $11.2B 1Q07 commercial product backlog, up 63% versus 1Q06

• Great service business with large installed base & $38B CSA backlog

• Systems and engines for next generation wide & narrow bodies

• Continuing to introduce new high technology products

–Improved fuel burn

–Lower maintenance cost

–Environmentally friendly

Revenue

28GE – Aviation

Paris Air Show 2007

Military engines … win with technology

Fighters

1954

1960

1971

1980

1970

1979

1998

2011

J79

J85

TF34

F404

F101

F110

F414

F136

Transport / Tankers

GEnx

LEAP56

TF39

CF6-6

CF6-50

CF6-80C2

CFM56-2

Next

Next

1964

1968

1969

1985

1982

1997 CFM56-7

Turboshaft

1957

1964

2002

1978

1988

1984

T58

T64

CT7-8

GE38

T700

CT7-9

CT7

2013

CFM International is a 50/50 JV with Snecma

29GE – Aviation

Paris Air Show 2007

Environment … need outpaces funding

SA-10/20

SA-18

Infrared Searchand Track

• US military facing tough choices–Global War On Terror utilization unabated

–Consuming life of already aged equipment … operating and maintenance cost � 2X in 10 yrs

• Developing pent-up demand–Must recapitalize / modernize– Force structure matched to evolving threat environment

• Longer cycle solution– Process / funding driven– 3 to 5 year lead-time for procurement funding

30GE – Aviation

Paris Air Show 2007

Positioning for the future

C-5M LHD-8 MMA

F-16E/F F110/ SLEP F-15K

JSF LCA Korea PKX

H-60M US-101 UCAV X-45CCH-53K

’03 ’05 ’06

$0.5 $0.5$0.6

Sustaining developmentinvestment

($ in billions)

Military R&D

31GE – Aviation

Paris Air Show 2007

Large turbo-shaft power segment

• Excellent value proposition

– 10% lower fuel consumption

– 50% - 80% operation & support cost advantage

• Modern entry in largest revenue segment

Adjacent Opportunities

H-47

Euro Heavy LiftE-2D

V-22

Marine

Sikorsky CH-53K

GE38-1B selected to power U.S. Marine Corps CH-53K

32GE – Aviation

Paris Air Show 2007

JSF program update

Cumulative engine & spares cost

F136

Sole Source

Competitive

$100B

•Congressional studies complete– Lack of agreement on cost of competition

– Agreement on all other competition benefits

•Congressional review underway– House & Senate Armed Services Committee provided full funding ($480MM)

– House (June ’07) and Senate (Aug ’07) Appropriation Committee marks to follow

•12 years of Congressional support for competition

30+ Years of Service

33GE – Aviation

Paris Air Show 2007

Revenue

’03 - ’064% CAGR

Services

Engines 1.5

1.6

1.7

1.8

$3.5

‘03 ’06’05

$3.5$3.1

1.6

1.9

Positioned to fulfill long-term demand($ in billions)

•GE active in $50B of $66B revenue market (’07-’16)

– $20B combat fighters

– $14B rotorcraft

– $16B special mission & marine

• Continuing to invest in R&D

• Joint strike fighter

– Congressional marks soon

– Presence with power systems, stores management and actuation

34GE – Aviation

Paris Air Show 2007

OP 20.2% 21.6% 22.1%

GE Aviation

'04 '05 '06

$11.1

$11.9

$13.29%

CAGR

GE Aviation … great business

• Winning technology

• Deep domain knowledge

• Growing installed base & services, $39B backlog

• Reliable execution … margin expansion

• Strong track record of organic & inorganic growth

Great business model

($ in billions)

Revenue

GEAviation

Scott C. DonnellyPresident & CEO

2007 Paris Air Show