General Electric (GE) John Myers Rob Park Matt Richter Tuesday, November 22, 2005

Company Overview General Electric (GE) Company was founded as a creation of a merger between Edison General Electric Company and Thomson-Houston Electric Company in GE Company is a diversified industrial corporation engaged in the development, manufacturing, and marketing of various products for the generation, transmission, distribution, control, and utilization of electricity Operations are held in approximately 100 countries worldwide. Headquarters based in Fairfield, Connecticut.

GE’s Business Segments (past) Prior July 5th, 2005, GE’s businesses operated within 11 different segments: Advanced Materials, Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment and Other Services, Healthcare, Infrastructure, Insurance, NBC Universal, and Transportation

GE Market-Focused Businesses As of July 5, 2005, GE reorganized its 11 business segments into 6 market-focused core businesses: GE Industrial: provides a broad range of products and services throughout the world, including: appliances and lighting, plastics and silicones products, and equipment services GE Infrastructure: one of the world’s leading providers of fundamental technologies to developing countries, including: energy, oil and gas, and water process technologies GE Commercial Finance: provides loans, operating leases, financing programs, commercial insurance, and an array of other products and services aimed at enabling businesses worldwide to grow

GE Market-Focused Businesses GE Consumer Finance: a leading provider, under the GE Money brand, of credit services to consumers, retailers and automotive dealers around the world GE Healthcare: is a leader in the development of a new paradigm of patient care dedicated to detecting disease earlier and helping physicians tailor treatment for individual patients. NBC Universal: is one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience

Segments Total Segment Profits 22% 4% 14% 9%10% 32% 2% 7% Advanced Materials, Consumer & Industrial Energy Insurance Transportation Healthcare NBC Universal Commercial and Consumer Finance Infrastructure and Equipment & Other Services Consolidated 3-Year Revenues 14% 17% 10% 8% 6% 24% 2% 19% Energy Insurance Transportation Healthcare NBC Universal Commercial and Consumer Finance Infrastructure Advanced Materials, Consumer & Industrial and Equipment & Other Services

Segments Three segments whose operations have a significant effect on consolidated results and reflect their changing economic environments are Energy, Insurance and Transportation –Energy segment is well positioned for its markets in 2005 and beyond –Overall, Transportation reported segment profit that grew $0.6 billion in 2004 Results at two major segments, Healthcare and NBC Universal, reflected continued investment and growth over the last three years –Healthcare showed strong growth as 2004 revenues and segment profit both rose about 50% since 2002 –The combination of NBC and VUE in 2004, and successful acquisitions of Telemundo and Bravo in 2002, has created a diversified world-class media company Most other operations achieved operating results in line with expectations in the 2002 to 2004 economic environment –Solid core growth, disciplined risk management and successful acquisitions have delivered strong results in commercial and consumer finance – Infrastructure, with growth platforms such as security and water treatment, continued to grow significantly through acquisitions

Market Outlook Market is increasing through Global growth

Global Growth Global revenues rose 18% to $71.8 billion in 2004 GE revenues in Europe rose 40% led by Healthcare and NBC Universal reflecting the Amersham acquisition and the combination of NBC and VUE GE revenues in the Pacific Basin increased 13% led by Advanced Materials, Infrastructure and Energy. U.S. exports rose 35% on strong growth at Energy and Transportation

Ratios Comparison General Electric3M Market Cap382.50B60.21B Return on Equity (ROE)17.62%33.34% Free Cash Flow$(44.63)B$3.76B EPS PE Debt to Equity Operating Margin14.81%23.36% ***It is important to note that negative free cash flow is not bad in itself. If free cash flow is negative, it could be a sign that a company is making large investments. If these investments earn a high return, the strategy has the potential to pay off in the long run.

Recent Headlines in /27 - GE reorganizes business units –11 units down to 6 7/8 - Growth and emerging markets conference –Int’l Operations generate half of GE revenue and should grow 15% in 2005 and grow for 5+ years 10/14 - Reports 9% overall revenue growth –Consumer and Commercial Finance doing well 11/18 - Sells insurance business to Swiss Re, further divesting its insurance business

Charting the Headlines 6/27 7/8 10/14 11/18

What Bears Might Say… Accounting is not always conservative GE’s large size makes it difficult to increase revenue –Exposed to risk across many industries Goodwill too large of a percentage of assets due to many acquisitions

Bull’s Point of View Best growth numbers in years this 1st Quarter –Revenue 19% and Earnings 25% GE invest heavily in R&D = Comp. Adv –$12.5 Billion over last 5 years –Uses technologies across different units Selling off insurance business –Lost $700 Million over last 5 years GE does not over-invest –Dividend payout ratio ~50% over past 4 years Strong Management –Jeff Immelt’s Pay

Recommendation BUY –Currently $36.20 –AAA Credit Rating Making a run –S&P 500 Up Morningstar –$38.00 Fair Value DCF = $37.68

Questions????