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Yash Bhatnagar.  Buy: $15.80  Sell: $20  The company operates through four segments: ◦ Energy ◦ Technology Infrstructure ◦ Capital Finance ◦ Consumer.

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Presentation on theme: "Yash Bhatnagar.  Buy: $15.80  Sell: $20  The company operates through four segments: ◦ Energy ◦ Technology Infrstructure ◦ Capital Finance ◦ Consumer."— Presentation transcript:

1 Yash Bhatnagar

2  Buy: $15.80  Sell: $20

3  The company operates through four segments: ◦ Energy ◦ Technology Infrstructure ◦ Capital Finance ◦ Consumer and Industrial  Ranked as the 14 th most profitable company worldwide, and the sixth largest firm. (Fortune, 2011)  GE participates in a wide variety of markets including the generation, transmission and distribution of electricity, aviation, automation, motors, jet engines, medical imaging, and Television media (NBC co- ownership)  Headquartered in Fairfield, Connecticut  Jeffrey Immelt is Chairman and CEO

4  Current Price: $16.06  P/E Ratio:13.19  Beta:1.58  Dividend/ Yield:0.15/3.74%  EPS:1.22  52-Week Low:$14.02  52-Week High: $ 21.65  Market Cap: $ 170.24B

5 ◦ Extremely diversified core offerings  9/11 Hit on insurance business  Survival of ‘08 Recession ◦ Strong history and corporate culture ◦ Current price at lower end of 52 week range. ◦ Earnings growth expected in 2012 ◦ Met 3 rd quarter profit estimates ◦ The stock deliver a 5 year average annual growth rate of around 10%. ◦ Sharpe Ratio (with estimated profit) of 2.7 ◦ Third-quarter net earnings attributable to GE climbed 57 percent to $3.22 billion

6  Siemens AG, 3m Company, United Technologies Corp., Hitachi Ltd.  More diversified than competitors  Long term stability  More than twice the market cap of next largest competitor (Siemens AG)  Perfectionist corporate culture

7  #82 green company (Newsweek)Newsweek  #13 most admired company (Fortune)  Environmental initiatives  On June 6, 2011, GE announced that it has licensed solar thermal technology from California-based eSolar for use in power plants that use both solar and natural gas. [55] [55]  On May 26, 2011, GE unveiled its EV Solar Carport, a carport that incorporates solar panels on its roof, with electric vehicle charging stations under its cover. [56]carport [56]  In May 2005 GE announced the launch of a program called "Ecomagination," intended, in the words of CEO Jeff Immelt "to develop tomorrow's solutions such as solar energy, hybrid locomotives, fuel cells, lower-emission aircraft engines, lighter and stronger durable materials, efficient lighting, and water purification technology”. [57] The announcement prompted an op-ed piece in The New York Times to observe that, "while General Electric's increased emphasis on clean technology will probably result in improved products and benefit its bottom line, Mr. Immelt's credibility as a spokesman on national environmental policy is fatally flawed because of his company's intransigence in cleaning up its own toxic legacy." [58] [57]clean technology [58]  GE has said that it will invest $1.4 billion in clean technology research and development in 2008 as part of its Ecomagination initiative. As of October 2008, the scheme had resulted in 70 green products being brought to market, ranging from halogen lamps to biogas engines. In 2007, GE raised the annual revenue target for its Ecomagination initiative from $20 billion in 2010 to $25 billion following positive market response to its new product lines. [59] In 2010, GE continued to raise its investment by adding $10 billion into Ecomagination over the next five years. [60] [59] [60]  GE (General Electric) Energy's renewable energy business has expanded greatly, to keep up with growing U.S. and global demand for clean energy. Since entering the renewable energy industry in 2002, GE has invested more than $850 million in renewable energy technology. In August 2008 it acquired Kelman Ltd, [61] a Northern Ireland company specializing in advanced monitoring and diagnostics technologies for transformers used in renewable energy generation, and announced an expansion of its business in Northern Ireland in May 2010. [62] In 2009, GE's renewable energy initiatives, which include solar power, wind power and GE Jenbacher gas engines using renewable and non-renewable methane-based gases, [63] employ more than 4,900 people globally and have created more than 10,000 supporting jobs. [64]renewable energyclean energyrenewable energy industry [61] [62]solar powerwind powerGE Jenbachergas engines [63] [64]  GE Energy and Orion New Zealand Limited (Orion) have announced implementation of the first phase of a GE network management system to help improve power reliability for customers. GE's ENMAC Distribution Management System is the foundation of Orion's initiative. The system of smart grid technologies will significantly improve the network company's ability to manage big network emergencies and help it to restore power faster when outages occur.smart grid  GE unveiled a 40W replacement Energy Smart LED bulb, to be available late 2010 or early 2011. The company claims that the new LED bulb will provide a 77% energy savings and produce nearly the same light output as a 40W incandescent bulb, while lasting more than 25 times as long.

8  Educational initiatives  GE Healthcare is collaborating with The Wayne State University School of Medicine and the Medical University of South Carolina to offer an integrated radiology curriculum during their respective MD Programs led by investigators of the Advanced Diagnostic Ultrasound in Microgravity study. [66] GE has donated over one million dollars of Logiq E Ultrasound equipment to these two institutions. [67]Wayne State University School of MedicineMedical University of South Carolina Advanced Diagnostic Ultrasound in Microgravity [66] [67]  Compliance & Governance  In a time of rigorous regulatory oversight and enforcement, strong compliance and governance processes are more important than ever for global organizations. Merely having regulations in place is not enough–companies must devote significant attention and resources to ensuring that such rules are truly embedded in their actions every day.  GE infuses compliance and governance into every aspect of its business. On a companywide level, the Regulatory Excellence initiative has mandated a full reexamination of GE’s compliance systems and processes to assure that risks are anticipated and managed effectively. Processes are in place for executive accountability and compliance training, and an open reporting environment and acquisition framework set the tone for a culture of integrity.

9  Policy Positions  Energy & Climate GE believes that energy, environmental and economic challenges present an exciting opportunity to create solutions that benefit our customers and society. Read more about our viewpoint on Energy & Climate on the GE corporate Web site. Free Trade GE believes a strong global trade network spurs innovation, strengthens the rule of law and can help lift people out of poverty and into active economic participation. Read more about our viewpoint on Free Trade on the GE corporate Web site. Iran In 2005, GE and its board decided to stop doing business in Iran due to developing circumstances, the concerns of our shareholders and our view of our corporate responsibilities. Read more about our viewpoint on Iran on the GE corporate Web site. China Policy Growing GE’s business in China depends on our continued leadership in technology, environmental concerns and best business practices.Read more about our viewpoint on Energy & Climate on the GE corporate Web site. Read more about our viewpoint on Free Trade on the GE corporate Web site.Read more about our viewpoint on Iran on the GE corporate Web site.


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