GE 2014 Annual Report Download - page 34

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2016 OPERATING EPS GOAL
75%
INDUSTRIAL
How We’ve Made Purposeful Portfolio Moves
Over the past decade, we have repositioned GE as a more focused, high-value industrial company. This includes making
major investments to strengthen our infrastructure portfolio, substantially reducing our fi nancial services businesses & selling
businesses in which we lack competitive advantages.
MAJOR PORTFOLIO CHANGES SINCE 2001
POWER & WATER
Rebuilt & diversifi ed business after the power
bubble to include Distributed Power, Water & Wind
• Enron wind assets
• Multiple water assets
• Jenbacher Gas Engines
• Alstom announced1
OIL & GAS
Built a competitive & diverse franchise
• Vetco Gray
• Hydril
• Dresser
• Wood Group Well Support
• Wellstream
• Lufkin
HEALTHCARE
Broadened Healthcare diagnostics franchise
beyond U.S. diagnostic imaging to include Life
Sciences & Healthcare IT
• Amersham
• Instrumentarium
• IDX/Healthcare IT
AVIATION
Expanded profi t pools for the business through
acquisitions focused on systems & supply chain
• Smiths Aerospace
• Avio
ENERGY MANAGEMENT
Added scale to the business
• Converteam
• Alstom announced1
STRONGER & SMALLER GE CAPITAL
MEDIA
Reposition NBC Universal & divest at
a good return
• Sold NBC Universal to Comcast
PLASTICS, SILICONES & SECURITY
Sell industrial businesses that do not fi t
GE’s core infrastructure platform
• Sold Plastics to Sabic
• Sold Silicones to Apollo
• Sold Security to United Technologies
APPLIANCES
Exit as it does not fi t GE’s core
infrastructure platform
• Announced sale of Appliances to Electrolux1
INSURANCE
Sell insurance before the storm to
reduce risk
• Completed staged exit of Genworth Financial
• Sold Reinsurance to Swiss Re
• Sold FGIC to Blackstone
CONSUMER FINANCE
Exit as it lacks GE competitive advantage
• Completed IPO of Synchrony Financial &
expect to split-off remaining interest1
• Exited Nordic & Swiss consumer fi nance
businesses & announced sale of Hungary
consumer fi nance business1
1
2
3
4
5
INVESTMENTS DISPOSITIONS
Ending net investment (ex. liquidity)2
Long-term debt outstanding
Commercial paper
Cash & liquidity
Tier 1 common ratio — Basel 1 (estimated)2
Adjusted debt:equity ratio2
1. Subject to regulatory approvals.
2. Non-GAAP Financial Measure. See Financial Measures That Supplement U.S. Generally Accepted Accounting Principles Measures (Non-GAAP Financial Measures) on page 94.
2008 2014
$513B
$381B
$72B
$37B
4.7%
8.95:1
$363B
$207B
$25B
$76B
12.7%
3.15:1
STRONGER
IN 2014
25%
FINANCIAL SERVICES
GE only in businesses
that connect to our core
competencies
14 GE 2014 FORM 10-K