Presentation on theme: "Rethinking ASEAN! Towards ASEAN Community 2015"— Presentation transcript:
1Rethinking ASEAN! Towards ASEAN Community 2015 The ASEAN Forum:Rethinking ASEAN! Towards ASEAN Community 2015Jakarta 7 August 2007Gatot S Prawiro MSc.GE Energy Indonesia Country Executive
2This is GE Operating in 100+countries … 125+ years … 300,000+ employees worldwide … 2006 Revenue US$163BNBC UniversalCommercial FinanceConsumer FinanceInfrastructureIndustrialHealthcareEnergyOil & GasWaterEnergy Fin SvcsAircraft EnginesRailAviation Fin SvcsGE was originally founded by Thomas Alfa Edison (best known as the filament light bulb inventor), hence has been in business for more than 126years. Last year’s revenue was about $163B …Since July 2005, GE was restructured to consist of 6 business groups.POINT to the Slide, explain one by one, then end and dwell a minute on INFRASTRUCTUREConsumer & Ind.Equip SvcsPlasticsSecuritySensingFanucInspect TechNetworkStationsEntertainmentUniversalSports/OlympicsDiagnostic ImagingClinical SystemsInfo TechnologyServicesBio SciencesFactoringLeasingReal EstateCorp Fin SvcsHealthcare Fin SvcsEuropeAsiaAmericasAustralia / New Zealand
3Transportation • Water & Process Technologies GE InfrastructureUnderground, on the ground, and in the air, GE Infrastructure is keeping the world running smoothly and providing imaginative solutions to improve lives.GE Infrastructure helps emerging countries grow and developed countries thrive with a portfolio that includes traditional and renewable energy systems, aircraft engines, oil and gas technology, locomotives, and water and process systems.Aviation • Commercial Aviation Services • Energy • Energy Financial Services • Oil & GasTransportation • Water & Process Technologies
4Plastics • Security • Sensing • Advanced Materials GE IndustrialGE Industrial helps keep the world working through a broad range of products, as well as equipment leasing, and also management and operating services.GE Industrial helps keep the world working through a broad range of products including appliances, lighting, factory automation systems, plastics, silicones, quartz and ceramics products, and security and sensing technology. GE Industrial also offers equipment leasing, as well as management and operating services.Consumer & Industrial • Equipment Services • GE Fanuc • Inspection TechnologiesPlastics • Security • Sensing • Advanced Materials
5NBC Universal NBC Universal makes the world think, feel, and smile. NBC Universal is one of the world’s leading media and entertainment companies – developing, producing and marketing film, television, news, sports, and special events to a huge global audience.Television Networks • Production & Distribution • Film • Parks & Resorts
6Healthcare Information Technologies • Services • Bio-Sciences GE HealthcareGE Healthcare brings the world medical science and technologies that are helping to transform healthcare. We are working with our partners in healthcare to help them predict, diagnose, inform, and treat disease earlier than ever.With expertise in medical imaging and information technologies, medical diagnostics, patient monitoring and life-support systems, disease research, drug discovery, and the purification of bio-pharmaceuticals, we are working with our partners in healthcare to help them predict, diagnose, inform, and treat disease earlier than ever.We call this commitment Early Health, a focus on helping healthcare professionals provide patients with earlier diagnosis, earlier information, and earlier treatment of disease – in some cases, even before factors which provoke a disease come fully into play.Diagnostic Imaging • Interventional Cardiology & Surgery • Clinical SystemsHealthcare Information Technologies • Services • Bio-Sciences
7GE Commercial FinanceGE Commercial Finance offers an array of products and services aimed at enabling businesses worldwide to grow.Services such as loans, operating leases, fleet management, and financing programs for all sizes businesses help customers create and take advantage of opportunities that enable them to reach their full potential.Corporate Financial Services • Healthcare Financial Services • Capital Solutions • Real Estate
8GE Consumer FinanceUnder the GE Money™ brand, Consumer Finance is a leading provider of credit services to consumers, retailers, and auto dealers in countries around the world.This diverse unit offers financial products such as private label credit cards, personal loans, bank cards, corporate travel and purchasing cards, auto loans, auto leases, mortgages, debt consolidation loans, home equity loans, and credit insurance.GE Money™ provides an alternative to high street banks, with products like credit cards, buy-now-pay-later plans, loans, mortgages, re-mortgages and insurance
9Resourceful Accountable Our Actions and ValuesWhat we doTo help us drive and grow this rather large and diversified company (some call it the “GE Government”), GE has a simple set of actions that guides what we do:Imagine: We put imagination to work for our customers, people and communitiesSolve: We help to solve some of the world’s toughest problemsBuild: We are a performance culture that builds markets, people and shareholder valueLead: We are a meritocracy that leads through learning, inclusiveness and changeOur values guide how we work, and we do this with unyielding INTEGRITY.How we workPassionate CuriousResourceful AccountableTeamwork CommittedOpen Energized
10Our Integrity The Spirit and the Letter A personal commitment by every GE employee to follow our Code of ConductCOMPLIANCERE$ULT“At GE Nothing -- not “making the numbers”, competitiveness or direct orders from a superior – should ever compromise our commitment to integrityEvery employee signs our integrity policy and participates in rigorous compliance training. We are not allowed to get orders whilst compromising Compliance.Jeffrey R. ImmeltChairman of the Board & CEO“Statement of Integrity” 1/2002
11GE – Making Growth a Process CustomersUse process excellence to satisfy customers and drive growthLean Six SigmaNet Promoter ScoreGrowthLeadership TraitsGrowth LeadersInspire and develop people that know how to help customers and GE growInnovationGenerate new ideas and develop capabilities to make them a realityImagination BreakthroughsCECOR frameworkExecute forGrowthIn order to grow GE at a rate of about 8% per year, every year; we have to at least make Growth a process.We start with the Customers; we’ll make sure that they are satisfied because we help their growth.GE believes that Innovation, where ideas are made into reality and Technology which fits, be it in products, contents or services will fuel Commercial Excellence: where The Sales and Marketing Force will have “FUN” in bringing this to the Global Market. The good thing is, creative and energized Sales and Marketing Force will in turn inspire and further develop Leaders who are focused on growth, who’s objective is Customer satisfaction and their growth.Emerging MarketsGlobalizationCreate opportunities everywhere and expand in developing global marketsGreat TechnologyHave the best products, content and servicesCommercial ExcellenceDevelop world-class sales and marketing talent and demonstrate the value of “one GE”New Product IntroductionOne GE: Enterprise Solutions& Brand
12ecomagination : Committed to Deliver Keep the public informed on progress4.3.Improve our energy efficiency and lower our GHG emissions2.Grow revenues to US$20B by 2010 by delivering customer value1.Increase R&D investment from US$700M to US$1.5B by 2010Customer ValueProducts CertifiedSignificantly and measurably improvingGEnx, GE90-115B, Earth Rewards Cards, Evolution Rail, Desalination, Pure Water Membrane, Solar, Wind Energy, Energy Smart CFLs, etc.200517Operating PerformanceEnvironmental Performance+This is a great example where we focus on our customer first.As a result of our research and engagements, we saw very real challenges facing our customers and an incredible opportunity to deliver GE solutions that address those challenges.With that in mind, we formulated the ecomagination strategy and a made four key commitments to make sure we deliver on ecomagination:First, GE will increase its R&D investment in ecomagination technologies to $1.5 B per year so that we can bring you more and better solutions.For GE invested $900 million in cleaner technologies in 2006Second, by delivering customer value – in terms of better operating and environmental performance - we will deliver shareowner value in the form of increased revenues.GE has increased its ecomagination pipeline by 50% over the last year — from 30 products to 45.2006 revenues at $12 billion; orders and commitments have increased to $50 billion.Third, we will “walk the talk” and will employ the same technologies we are asking our customers to invest in. And thereby reduce our own Green House Gas emissions by 1% by 2012.GE is on track to reach its internal commitment. GHG emissions in 2006 from operations have been reduced by about 4% from the 2004 baseline. GHG and energy intensity have been reduced by 21% and 22% respectively compared to 2004.Fourth, we will keep the public informed as to how GE is doing in its pursuit of ecomagination.GE is keeping the public informed via its ecomagination Web site, dozens of global conferences and stakeholder eventsCustomer ValueWe’ve spoken quite a bit about addressing customers’ economic and environmental challenges with ecomagination solutions.To ensure that GE delivers customer value on these fronts, each ecomagination product or service must meet two key criterion:They must significantly and measurably improve OPERATING PERFORMANCE and ENVIRONMENTAL PERFORMANCE. This is not an either or, proposition.To ensure that GE’s ecomagination solutions meet these two criterion, we put each product or service through a rigorous, data driven certification process that includes an independent third party audit.Smartburn Rail, Proficy Plant App. Software, CMH Lamps, LEDs, Cooling Systems, Fuel Treatment, Demineralization with RO, etc.200645Lower Electricity UsageImproved Fuel ConsumptionIncreased EfficiencyEconomical MaintenanceReduced emissions – NOx, SOx, Hg and CO2Zero Emissions (Renewable Power)Reduced Mercury Content (Lighting)200750+Hybrid Rail Locomotive, Trip Optimizer Software, Homebuilder program, ZeeWeed Ultrafiltration, etc.
13Light Emitting Diode (LED) GE Green TechnologiesEnergy:Lighting:Propulsion:Solar WindGE90-115B 22% better fuel efficiencyLight Emitting Diode (LED)Biogas IGCCDiamond Precise ® LampCompact Fluorescent Lamp (CFL)Evolution Series LocomotiveCuts key emissions by 40%10% lower lifecycle costsUp to 75% less electricity usage; Last longerMaterials: Solar Control Lexan SheetsWater: Wastewater Reuse SystemMembrane Bioreactor (MBR) SystemTurns facility wastewater into high quality (non-potable) reusable water streamRelatively small footprintSimple, automated operationEasier to implement for new constructionReduces fresh water use by %A unique additive able to specifically block heat producing infra-red waves in visible light ...Let me just point out a few things quickly:Solar EnergyThe earth receives more energy from the sun in just one hour than the world uses in a whole year.Worldwide photovoltaic installations increased by 927MW in 2004, up from 574 MW installed during the previous year. In 1985, annual solar installation demand was only 21 Megawatts.Solar Energy (photovoltaic) prices have declined on average 4% per annum over the past 15 years. Progressive increase in conversion efficiencies and manufacturing economies of scale are the underlying driversresidential solar energy system typically costs about $8-10/watt installed. Where government incentive programs exist, together with lower prices secured through volume purchases, installed costs as low as $3 to $6/ watt - or some cents per kilowatt hour can be achieved. Without incentive programs, solar energy costs (in an average sunny climate) range between 22-40cents/kWh for very large PV systems.This is truly a distributed generation option… at the point of load.No new T&D requiredGreat at offsetting peaks…reducing strain on T&DCompetes w/ Retail prices…not wholesaleReduced heat buildup … 25% to 40% energy savings
14ASEAN Integration is good for GE…. and ultimately for all business One market of more than 500 million peopleBoasts a collective GDP of USD 750 billionCommitment to AFTASimplified/harmonized rules and regulationsFor a company like GE, as we’ve just learned, ASEAN Integration is good.Whilst GE has been doing business in the ASEAN countries before even ASEAN was “born”, nevertheless we are excited of the integration of ASEAN and of 2015.We believe GE can really support The Regional collaboration in the Trans-ASEAN Gas Pipeline (TAGP) and the ASEAN Power Grid (APG) Projects, for example.
15Southeast Asia Economics Real GDP GrowthReal GDP Growth 2007Average GDP Growth = 5.5%%%Real GDP by Country 2007Total GDP Size at current market prices (US$ bn) = 1,133The ASEAN Market is an exciting market, its GDP growth is higher than the Global GDP.Sources:World GDP Growth taken from EIU – “Singapore: 5-year forecast table” 28 July Same titled report published on 11 Jan 2007, also used to update 2006 to 2010 numbersSEA Real GDP Growth2001 to 2009: Retained numbers from previous powerpoint(Not clear about how SEA is defined here – which countries included in calculations?)Source: Economist Intelligence UnitSE ASIA Growing > Global GDP
16GE in Southeast Asia 2006 US$3 Billion Revenues 20% Annual Growth 8,921 Employees VietnamPhilippinesCambodiaGE Asia Revenues (US$ MM)2006% of Asia% of Int’lJapan6,28828.88.0China Region5,03623.06.4Australia & New Zealand4,45420.45.7Southeast Asia3,00813.83.8South Korea1,6877.72.2India1,3911.8Total21,864100.027.8ThailandBruneiMalaysiaSingaporeIndonesiaIn 2006 GE’s revenue in Southeast Asia was about US$ 3 Billion. We’ve seen 20% annual growth for the past 5 years.Ladies and Gentlemen, this revenue represents about 14% of total Asia and about 4% of Total International Revenues.ASEAN is important to GE, we are here to stay and to grow.Total 2006 GE Int’l Revenues = US$ 78.5 bn
17GE – a part of ASEAN Community At GE, giving back is both an individual employee activity as well as an organizational effortGE Volunteers – spend over 1 million hours of community service every year, running community projects in education, health, disaster aid, and environmental education.Since we are here to stay and grow together with The ASEAN Community, we need to be part of the community. We are here in good times and bad times.Then read the chart!Singapore, July 2007 : Walkathon, raised S$ 5000 for Disability Sports CouncilIndonesia, ongoing : Adiwiyata program supporting “green curriculum” nationwideThai, 2006 : building homes for tsunami surviving communities
18Disaster ReliefThe GE family contributed more than $50 million in cash, products and services to respond to the Indian Ocean tsunami, the Gulf Coast hurricanes in the United States, and the South Asia earthquake.GE mobilized water purification systems, power generation, medical devices and more to provide relief in South Asia and the Gulf Coast.GE also raised an additional $82 million in relief funds via the telethons broadcast on the NBC networks.During the recent and past few years disasters, The GE family contributed more than $50 million in cash, products and services to respond to the Indian Ocean tsunami, the Gulf Coast hurricanes in the United States, and the South Asia earthquake.GE mobilized water purification systems, power generation, medical devices and more to provide relief in South Asia and the Gulf Coast.GE also raised an additional $82 million in relief funds via the telethons broadcast on the NBC networks.GE Volunteers continue to give their time to help victims of disaster recover and rebuild.
19We wish ASEAN the very best and congratulations on its 40th Anniversary; GE thanks ASEAN Countries for the business and we give our commitment to stay, invest and to help further build ASEAN Member States.Thank you for the opportunity given to share about GE with the Forum.