GE Focuses Portfolio for Growth and Shareholder Value Creation

• Company to focus on Aviation, Power and Renewable Energy
• Healthcare to become standalone company; GE expects to monetize 20% and distribute
remaining 80% of GE Healthcare to shareholders tax-free
• Plans to fully separate Baker Hughes, a GE company (BHGE)
• Strengthening the balance sheet: Clear path to reduce debt by $25 billion, achieve Industrial
net debt to EBITDA of less than 2.5x by 2020 and further de-risking GE Capital
• Businesses as center of gravity: Leaner corporate structure with $500+ million in savings
• Plans to maintain current quarterly dividend through completion of Healthcare separation
• Larry Culp to succeed Jack Brennan as lead director
• Company to host a call with investors at 8:30 am ET

BOSTON – 26 June 2018: GE (NYSE: GE) today announced the results of its strategic review. GE will
focus on Aviation, Power and Renewable Energy, creating a simpler, stronger, leading high-tech
Industrial company. In addition to the pending combination of its Transportation business with
Wabtec, GE plans to separate GE Healthcare into a standalone company, pursue an orderly
separation from BHGE over the next two to three years, make its corporate structure leaner and
substantially reduce debt. GE’s Board of Directors unanimously approved the plans announced today.
John Flannery, chairman and CEO of GE, said, “Today marks an important milestone in GE’s history.
We are aggressively driving forward as an aviation, power and renewable energy company—three
highly complementary businesses poised for future growth. We will continue to improve our
operations and balance sheet as we make GE simpler and stronger.”

Flannery continued, “GE Healthcare and BHGE are excellent examples of GE at its best—anticipating
customer needs, breaking barriers through innovation and delivering life-changing products and
services. Today’s actions unlock both a pure-play healthcare company and a tier-one oil and gas
servicing and equipment player. We are confident that positioning GE Healthcare and BHGE outside
of GE’s current structure is best not only for GE and its owners, but also for these businesses, which
will strengthen their market-leading positions and enhance their ability to invest for the future, while
carrying the spirit of GE forward.”
GE of the Future

GE will be a focused high-tech industrial company that will be easier for investors to follow and
measure with a significantly improved balance sheet to support its remaining businesses:

• GE Aviation continues to be a leader in the aviation industry. GE technology powers two out of
every three commercial departures around the world and GE’s global installed base includes more
than 65,000 engines.
• GE’s energy strategy, driven by GE Power and GE Renewable Energy, is based on offering a full
range of energy solutions across the electricity value chain that bring affordable, reliable, efficient
energy to businesses and consumers. GE powers more than one-third of the world’s electricity
and has a valuable installed base of approximately 7,000 gas turbines, with a track record of
increasing productivity.
• GE will continue to invest for the future a


GE plans to fully separate its 62.5% interest in BHGE in an orderly manner over the next two to three
years. BHGE’s full stream offering brings together equipment, services and digital solutions to help its
customers be more productive—a unique and powerful value proposition in a changing market. The
separation will provide BHGE with enhanced agility and the ability to focus on leading in the oil and
gas industry.

GE Capital

GE continues to work to make GE Capital smaller and more focused on supporting its core industrial
businesses. The company intends to materially shrink the balance sheet of GE Capital targeting sales
of $25 billion in energy and industrial finance assets by 2020. The company is assuming an
approximately $3 billion capital contribution to GE Capital in 2019. In addition, the company is
actively exploring options to reduce its insurance exposure.

Lead Director Transition

GE also announced that the Board’s independent directors have completed the previously announced
lead director transition, electing Larry Culp, former CEO of Danaher, to succeed Jack Brennan, who is
completing his last term on the Board. The change is effective today. Mr. Culp will also chair the
Board’s Management Development and Compensation Committee. He joined the GE Board as an
independent director earlier this year.

Flannery said, “As lead director, Jack has been an incredibly valuable partner and advisor to GE
through economic cycles, changes to our business and our most recent leadership transition. I would
like to thank him for his advice and stewardship through a period of significant change for GE. He has
been especially helpful over the last year as we have conducted our review of the company and
developed our plan to position GE for the future.”

Flannery added, “Larry’s track record on strategy development and execution, capital allocation and
talent make him well suited to take on this role. I appreciate his clarity, transparency and businessfirst
philosophy, and I believe his leadership will be invaluable to GE as we enter our next chapter.”
Simpler, Stronger GE

Today’s announcements follow a series of changes GE has made in the past year. With the announced
sales of Distributed Power, Industrial Solutions, and Value-Based Care, and pending combination of
its Transportation business with Wabtec, GE’s $20 billion divestiture target is substantially complete.
Flannery concluded, “GE’s mission and technology change the lives of billions of people around the
world. We will now move forward with purpose to make our company simpler and stronger and
accelerate growth across our businesses. I’m confident that today’s actions, in conjunction with other
changes we have already made, will produce improved operating results and increased shareholder
value going forward. We are focused on executing the strategy and implementing the structure we’ve
laid out today to position our businesses for future growth.”

Conference Call and Webcast

The Company has scheduled an investor conference call to discuss today’s announcement. The call
will begin today at 8:30 a.m. Eastern time, the content of which is not part of this press release. A
slide presentation providing summary financial and statistical information that will be discussed on
the call will also be posted to the Company’s website and available for real-time viewing at The conference call will be broadcast live via a webcast and can be accessed by
visiting the Events and Reports page on the Company’s website at: An archived
version of the webcast will be available on the website after the call.

Forward-Looking Statements

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 financial condition, and often contain words such as “expect,” “anticipate,”
“intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or

Forward-looking statements by their nature address matters that are, to different degrees, uncertain,
such as statements about plans to maintain the GE dividend; plans to separate GE Healthcare as a
standalone company, including the timing and structure for that separation, the characteristics of the
business to be separated and the expected benefits to GE; plans to divest our equity ownership
position in Baker Hughes, a GE Company (BHGE) and the expected benefits to GE; debt repayment
plans; the benefits of the new GE Operating System; divestiture proceeds expectations; GE and GE
Capital liquidity; revenues; future corporate performance; and leverage targets.

For us, particular uncertainties that could cause our actual results to be materially different than
those expressed in our forward-looking statements include:

• our success in executing and completing, including obtaining regulatory approvals and
satisfying other closing conditions for, GE Industrial and GE Capital business or asset
dispositions or other announced transactions, including our planned separation or disposition
of GE Healthcare, GE Transportation and BHGE, the sale price, timing, and anticipated
proceeds from those or other dispositions and potential trailing liabilities;
• GE’s liquidity and the amount and timing of our GE Industrial cash flows and earnings, which
may be impacted by customer, competitive, contractual and other dynamics and conditions;
• our capital allocation plans, as such plans may change including with respect to the timing
and amount of GE dividends, organic investments, including research and development,
investments in Digital and capital expenditures, the repayment or migration of our
outstanding debt obligations, pension funding contributions, acquisitions, joint ventures and
other strategic actions;
• our ability to maintain our current short- and long-term credit ratings and the impact on our
funding costs and competitive position if we do not do so;
• customer actions or market developments such as reduced demand for equipment and
services and other challenges in our Power business, other shifts in the competitive landscape
for our products and services, changes in economic conditions, including oil prices, early
aircraft retirements and other factors that may affect the level of demand and financial
performance of the major industries and customers we serve;
• changes in law, economic and financial conditions, including the effect of enactment of U.S.
tax reform or other tax law changes, trade policy and tariffs, interest and exchange rate
volatility, commodity and equity prices and the value of financial assets;
• GE Capital’s capital and liquidity needs, including in connection with GE Capital’s run-off
insurance operations, the impact of conditions in the financial and credit markets on GE
Capital’s ability to sell financial assets, GE Capital’s leverage and credit ratings, the availability
and cost of GE Capital funding and GE Capital’s exposure to counterparties;
• pending and future mortgage loan repurchase claims, other litigation claims and the U.S.
Department of Justice’s investigation under the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 and other investigations in connection with WMC, which may affect
our estimates of liability, including possible loss estimates;
• our ability to launch new products in a cost-effective manner;
• our ability to increase margins through implementation of the new GE Operating System,
restructuring and other cost reduction measures;
• our ability to convert pre-order commitments/wins into orders/bookings;
• the price we realize on orders/bookings since commitments/wins are stated at list prices;
• the impact of regulation and regulatory, investigative and legal proceedings and legal
compliance risks, including the impact of WMC, Alstom, SEC and other investigative and legal
• our success in integrating acquired businesses and operating joint ventures, and our ability to
realize revenue and cost synergies from announced transactions, acquired businesses and
joint ventures, including Alstom and BHGE;
• the impact of potential product safety failures and related reputational effects;
• the impact of potential information technology, cybersecurity or data security breaches;
• the other factors that are described in “Forward-Looking Statements” in BHGE’s most recent
earnings release or SEC filings; and
• the other factors that are described in “Risk Factors” in our Annual Report on Form 10-K for
the year ended December 31, 2017.
These or other 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
Non-GAAP Financial Measures
In this document, we sometimes use information derived from consolidated financial data but not
presented in our financial statements prepared in accordance with U.S. generally accepted
accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures”
under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures
supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure.
The non-GAAP financial measures we use in this document include Industrial net debt and the ratio of
Industrial net debt to EBITDA. We cannot provide an equivalent GAAP guidance range for our
Industrial net debt to EBITDA targets, which are calculated based on rating agency methodologies,
without unreasonable effort. Industrial net debt reflects the total of gross debt, after-tax pension
contributions, adjustments for operating lease obligations, and adjustments for 50% of preferred
stock, less 75% of GE’s cash balance. There is significant uncertainty on the timing and amount of
events that could give rise to items included in the determination of this metric, including the timing
of pension funding, proceeds from dispositions, and the impact of interest rates on our pension
assets and liabilities. EBITDA excludes Oil & Gas EBITDA, but it includes the BHGE dividend, and it also
excludes other income, non-operating benefits costs, and adjustments for operating lease income or
cost. There is significant uncertainty on the timing and amount of events that could give rise to items
included in the determination of this metric, including the timing and magnitude of restructuring
activities and the timing of dispositions.

About GE

GE (NYSE:GE) drives the world forward by tackling its biggest challenges: Energy, health,
transportation—the essentials of modern life. By combining world-class engineering with software
and analytics, GE helps the world work more efficiently, reliably, and safely. For more than 125 years,
GE has invented the future of industry, and today it leads new paradigms in additive manufacturing,
materials science, and data analytics. GE people are global, diverse and dedicated, operating with the
highest integrity and passion to fulfill GE’s mission and deliver for our customers.

GE Investor Contact:
Matt Cribbins, 617.443.3400
[email protected]

GE Media Contact:
Jennifer Erickson, 646.682.5620
[email protected]