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GE Healthcare

© 2019 General Electric Company - All rights reserved


GE Healthcare

© 2019 General Electric Company - All rights reserved


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events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future
results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-
concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update
our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates
and forecasts. Actual results could differ materially.

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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
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Today’s agenda
Topic Presenter Additional activities

This is GE Healthcare Kieran Murphy Digital Showcase 10:30 a.m. – 11:00 a.m.

Imaging Tom McGuinness Onsite, 11th Floor

Ultrasound and Life Care Solutions Anders Wold

Services Jan Makela Shuttle to RSNA 11:00 a.m. – 11:30 a.m.


Boxed Lunches available
US and Canada Everett Cunningham

Europe and RCIS Catherine Estrampes


RSNA Booth Tours 12:00 p.m. – 2:00 p.m.
China Yihao Zhang
2301 S. Dr. Martin Luther
Operations and Financials Monish Patolawala King Jr. Drive, Chicago
Wrap Kieran Murphy

Q&A Steve Winoker

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© 2019 General Electric Company - All rights reserved
This is GE Healthcare

Kieran Murphy
President and CEO, GE Healthcare

© 2019 General Electric Company - All rights reserved


Summary

World-class Healthcare Systems and Pharmaceutical Diagnostics businesses

Leading global medical technology and digital solutions innovator

Strong growth outlook from market fundamentals and Precision Health

Near to medium term opportunities for operating margin and cash flow growth

Proven, experienced management team and mission-driven employees

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© 2019 General Electric Company - All rights reserved
A global leader in large, attractive markets
Solutions for the diagnosis, treatment and monitoring of patients

Global Imaging Ultrasound Life Care Pharma- Enterprise Biopharma


markets Solutions ceutical Software and
Diagnostics Solutions
Size ’18 $19B1 $6B1 $6B1 $8B2 $7B3
Growth
3-4% 4% 2-3% 3% 6%
‘19-’22
Growth • Persistent need for better care, delivered more efficiently
drivers • Growth of middle class & aging populations creates demand for more capacity
• Digital and AI ready for application to healthcare problems, at scale
• Growth in contrast use in developing markets and expanding indications of molecular
imaging agents
• Continued growth in Precision Diagnostics (e.g., cancer, Alzheimer's)
$47B global market (excluding services), expected to grow at 3-4%
1 Imaging, Ultrasound and LCS markets measured in equipment order $; all others based on revenue $; 2 X-Ray and MR contrast media and Nuclear Medicine (SPECT & PET)
3 ESS markets include Enterprise Imaging, Advanced Visualization and Care Area IT 4 Internal estimates 7
© 2019 General Electric Company - All rights reserved
Leading global medical technology and digital solutions innovator
Financials Differentiators
2017 2018 • >$1B invested annually in R&D programs
100+ year legacy of
Revenue $19.0B $19.8B • 15K patents issued; 5K pending
innovation
• Strong PET tracer and contrast agent pipeline

Operating Profit $3.5B $3.7B • 4M+ Installed Base and 2B+ exams per year
• 3 patients using contrast media per second
Global scale with
• 160+ countries
% of revenue 18.3% 18.7% world’s largest IB
• 57K employees worldwide
• Local, globally with R&D in 18 countries

FCF Conversion1 90% 124%


Ability to integrate • 200+ digital and analytics apps
data for insights • >230B patient images stored

1 Non-GAAP; FCF conversion: segment FCF / segment net income ($3.4B in ‘17 and $2.4B in ’18), adjusted to include restructuring expense
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© 2019 General Electric Company - All rights reserved
Legacy of industry-defining innovations for our customers
1960s 1970s 1990s 2000 2003 2014 2015 2018 2019
First 500-cycle, The world’s first World’s first The first to The world’s first Advanced First The world’s New MR AIR™
battery- “rotate only” and only iso- combine the high resolution Workstation™ hospital first Coils named
powered Computed osmolar power of PET 4D fetal TAVI Analysis for Command Ultrasound best new
comprehensive
mobile X-ray Tomography contrast and CT in a Ultrasound surgical workup Center optimized for radiology
generator (CT) medium single system system planning (JHU) AI device

1896 1969 1980s 2000 2010 2013 2016 2018 2019


Produces the First non- The world’s First SPECT First Introduced first World’s first First ever FDA
forerunner of ionic X-ray first agent for the handheld PET agent for mammo deep approval of
today’s x-ray contrast commercial evaluation of Ultrasound colour imaging system that learning first on-
systems medium high-field clinically of amyloid puts image device AI to
MR system uncertain plaque in women in recon prioritize
Parkinson’s evaluation of control software in critical chest
Disease Alzheimer’s CT X-Ray review
Disease
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© 2019 General Electric Company - All rights reserved
Deliver innovation close to our customers, globally Manufacturing countries
R&D countries

2018 GE Healthcare revenue


6,600
Sales professionals

2,400
Channel partners

8,000 US & Canada Europe


Field service engineers $9 billion $4 billion
China
7,400 $3 billion

Engineers with Rest of World

1/3 $4 billion

In China and India

38
Manufacturing sites
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© 2019 General Electric Company - All rights reserved
We are a trusted partner to our customers

▪ Our businesses deliver $8B of revenue that is recurring in


nature (45%+ of total revenues), including integrated services, Recurring revenue sources:
pharmaceutical diagnostics, and digital licenses and Contract and break-fix services
subscriptions and parts
▪ We are a trusted partner to help our customers deliver
improved clinical outcomes, capacity, productivity, operational Apps and tech-enabled services
effectiveness, and lower total cost of ownership:
Consultative services
▪ We deliver unparalleled security of supply for contrast
media, nuclear tracers, consumables and accessories
Customer training and education
▪ Our HCS services support an installed base of 4M+ with
the capability to service ~300 make/models from other
OEMs giving us unique visibility into the market Consumables

▪ $18B1 backlog showcases shared commitment with our


customers Accessories

1 Backlog as of Q3’19 11
© 2019 General Electric Company - All rights reserved
Shift towards Precision Health opens significant new avenues of
growth for GE Healthcare
Precision Diagnostics Precision Therapeutics Precision Monitoring

In-Vivo + In-Vitro Decision Making Therapy Innovation Therapy Delivery Monitoring

From Protocol driven Too much data, in too Costly and risky R&D Complex and Patients only
many different places unguided monitored when sick

To Highly personalized Integrated, Precisely targeted Complex processes Pro-active approach


longitudinal, clinical trials and simplified. Precision to patient
fueled by AI biomarker-driven interventions. surveillance at scale
therapies

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© 2019 General Electric Company - All rights reserved
Our solutions are being enhanced with digital innovations
Predictive Platform and
services and Subscriptions to Intelligent ecosystem to
Smart devices remote fix increase access applications and integrate data
with enhanced capabilities to and align workflows to enable across disparate
results in less increase business model to contextual insights systems and enable
time customer uptime customer needs and visualization analytics

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© 2019 General Electric Company - All rights reserved
Our digitally-led solutions enable improved outcomes for our
customers and expand our market
Unlocking quality and Supporting improved Driving operational New business and
capacity with smart devices clinical outcomes using AI efficiency by unlocking data delivery models to drive
that create higher quality to enhance clinical decision silos and applying analytics to fleet consistency, manage
images with faster throughput support improve in-procedure workflow obsolescence, and align to
and patient flow evolving customer needs
Voluson™ E10 Critical Care Suite on Command Center CT Smart Subscription
OPTIMA™ XR240amx

Built on an integrated platform and ecosystem that connects data from across
devices, applies intelligence (e.g., analytics, AI) on the Edison platform, and engages
$1.1B
Digital revenue1
3rd party developers to build and deploy solutions to complement our offerings in 2018

1 Excludes dispositions; includes PACS, Advanced Visualization, and subscription and licensed software offerings 14
© 2019 General Electric Company - All rights reserved
Executing on our growth agenda
Key strategies Priorities for ‘20 – ‘22 Examples
Increasing R&D investments to expand portfolio Growing programs at 2X rate of
Innovation in high-value areas, including Digital revenue, investing in higher ROI
segments/adjacencies

Expand portfolio of solutions to new care areas Investing in integrated cardiology and
Enterprise Solutions
and integrated offerings oncology offerings

Investing in on-device AI and analytics, MR AIRx, scaling Edison™, enabling


supported by platform and ecosystem capabilities developer capabilities
Pharma/
Clinical MedTech Tech
Digital and Analytics
Developing partnerships and alliances with
stakeholders across the value chain

Improving Operating rigor through Lean to fund ~2.5k product & service cost out
Operational
growth while growing margins and cash projects / yr, Lean AWOs, automation
Execution
in back office
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Opportunity to accelerate growth through global commercial reach
52 local customer teams across the world… Priorities to accelerate growth
Account Executives
Product Sales Improving market visibility across key
Channel
Specialists regions and modalities
Partners

Investing in commercial productivity to


enhance customer experience

Growing new channels & models to


improve customer connectivity and service

Expanding lifecycle offerings (e.g., options,


upgrades, digital apps) to deliver more value
Financing Services
& peace of mind for customers
Project Management
Leading with solutions to improve
… supported by 9 strong regions customer productivity & capacity

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Pharmaceutical Diagnostics (PDx)

Leader in in-vivo imaging


agents … $2B in ‘18 revenue
growing at 2X market last
3 years
CT and
X-Ray MR Ultrasound
96 million patients imaged per
year … 3 patients use our
imaging agents per second

Comprehensive portfolio PET &


across all imaging modalities
SPECT
Supply chain excellence,
security of supply and low cost

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© 2019 General Electric Company - All rights reserved
Pharmaceutical Diagnostics… investing for growth acceleration
Priorities to accelerate growth
Core growth • Continued expansion of contrast business in MR,
Ultrasound
• Expansion of programs including diagnostic
agents in contrast media, PET cardiology,
Alzheimer’s + Parkinson’s Disease, immuno-
oncology

Partnerships • Developing innovation with external partners

Expanding the • Continued focus on Pharma Cos for selection of


market patients in clinical trials for immuno-oncology
• Digital & AI tools for image analysis, patient
stratification & decision support

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© 2019 General Electric Company - All rights reserved
Overview of GE Healthcare
Healthcare Systems CAGR, ’16-’18
Revenue ($ in Billions) %, adj for Acq/Disp Drivers of growth

Innovation Proven technology leader with #1


14.5 14.9 4%
100+ year track record of Market position
14.0
industry-defining innovations

Services Over 8,000 professionals ~35%


dedicated to supporting our HCS revenue from Services in 2018
customers' success

2016 2017 2018 Local, globally Established leader in every 12%


region, with a portfolio tailored China revenue growth (CAGR)
Life Sciences CAGR, ’16-’18 to needs of fast growth from 2015 to 2018
Revenue ($ in Billions) %, adj for Acq/Disp markets
Solutions Ability to partner with $2.6B
4.9 8% customers to deliver significant Contract value of Structured
4.6 improvements in outcomes
4.2 Partnerships secured since 2003

Biopharma
Digital Bringing modern techniques in $1.1B
Al to the practice of healthcare, In 2018 revenue from digital
Pharma Dx
powered by EdisonTM offerings, at accretive margins
2016 2017 2018

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Proven, experienced management team
Leadership highlights
Products Regions Functions
Tom McGuinness Everett Cunningham Monish Patolawala
Imaging US & Canada Finance
• 3 yrs @ GEHC • GEHC since June 2019 • 5 yrs @ GEHC
• 25+ yrs in Healthcare • 28 yrs in Healthcare • 25+ yrs @ GE
• VP, Operational
• Previously at Quest Transformation, GE
Anders Wold Catherine Estrampes Katya Kruglova
Ultrasound and Life Care Europe HR
Solutions • 22 Yrs @ GEHC • 8 yrs @ GEHC
• 20 yrs @ GEHC • 33 yrs @ GE • 21 yrs @ GE
• 35+ yrs in Healthcare
Kevin O’Neill Yihao Zhang Jim Borzi
Kieran Murphy Pharmaceutical Diagnostics China Integrated Supply Chain
President & CEO • 15 yrs @ GEHC • GEHC since July 2019 • 1 yr @ GEHC
• 21 yrs @ GE • 10 years in Healthcare • 25 yrs of SC leadership in
• Appointed June 2017 • Previously at Danaher Healthcare and Automotive
• Led Life Sciences division Amit Phadnis Soichiro Tada Mike McAlevey
through significant Digital Japan Legal and BD
growth over prior 6 years • 3 yrs @ GEHC • 7 yrs @ GEHC • 2 yrs @ GEHC
• 25+ years in Healthcare • 30 yr in Digital • 16 yrs in healthcare • 16 yrs @ GE

• 10 years @ GEHC Jan Makela Nal Gollagunta Tom Westrick


Services South Asia Quality and Regulatory
• 12 yrs @ GEHC • 2 yrs @ GEHC • 16 yrs @ GEHC
• 20 yrs @ GE • Prior experience at Cisco, • Prior auditor and controller
McKinsey experience

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Imaging

Tom McGuinness
President & CEO, Imaging

© 2019 General Electric Company - All rights reserved


Imaging plays a vital role in healthcare diagnosis and delivery
Touching patient lives around the world every day

$9B 100+ 250,000+ 1B+ ~200


Revenue from Countries with Installed base Exams every year Imaging-related
equipment & imaging on GEHC imaging software
services equipment sales machines applications
Diagnostic Imaging Image Guided Therapy

COMPUTED MAGNETIC MOLECULAR WOMEN’S


X-RAY SURGERY INTERVENTIONAL
TOMOGRAPHY RESONANCE IMAGING HEALTH

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© 2019 General Electric Company - All rights reserved
Imaging is an attractive $30B+ equipment & services global market

Global Imaging equipment market


Orders ($ in Billions) Drivers of future market growth
• Strong population dynamics… aging, middle class, increasing
penetration in developing markets, 2 out of 3 people globally without
access to imaging
18.3 19.1
17.2
• AI-enabled imaging solutions poised to drive tangible
improvements in clinical and operational outcomes

• Growth in image-guided, minimally-invasive surgical procedures


(e.g., TAVR); use of imaging in robotic surgery

2016 2017 2018


• Integrated digital diagnostics adoption, especially to improve
outcomes in care areas (e.g., oncology, cardiology, neurology)
Outlook: 3-4% equipment growth in near-
/mid-term, LSD in developed markets, • Imaging-driven biomarkers enable new therapies and support
MSD/HSD in developing markets treatment response

SOURCE: NEMA, JIRA, Yano research, IPSOS, COCIR, Infoview, Internal company data
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© 2019 General Electric Company - All rights reserved
Extending GEHC Imaging innovation leadership
Diagnostic Imaging Image Guided Therapy

COMPUTED MAGNETIC MOLECULAR


X-RAY WOMEN’S HEALTH SURGERY INTERVENTIONAL
TOMOGRAPHY RESONANCE IMAGING

EDISON DIGITAL PLATFORM

Market
#1 #2 #1 #2 #2 #1 #3
Position
• CT Smart • Minnie Award for • Metabolic imaging • First clearance on- • Patient-assisted • Bringing smart • Robotic interventional
Subscription (SaaS 2019 best radiology enables early device AI triage mammography algorithms to OR gantry for image-
Key Innovations

model) device – AIR™ Coils therapy decisions, application, e.g., exams imaging … eNR guided therapies, e.g.,
• Revolution Apex ™ • AIR™ Recon DL with e.g., Discovery™ Critical Care Suite • First to market reduces image Discovery™ IGS 7
with TrueFidelity ™ TrueFidelity™ AI- MI with on OPTIMA™ with contrast noise at least 30% • ASSIST application
AI-enabled images enabled images 1 quantitation XR240amx that enhanced during vascular and suite automated
• Revolution Maxima TM • AIR Touch™ auto • Advanced digital alerts clinicians precision biopsy, cardiac procedures identification of blood
enhanced workflow patient setup, AIR x™ applications to about critical e.g., SenoBright without an increase vessels feeding tumors
leveraging AI based AI-based workflow remove image conditions at point HD™ 1 with CESM in power or dose2 for cancer therapy, e.g.,
Auto Positioning 1 artifacts, e.g., of care LiverASSIST V.I.
MotionFree
1 510K pending 2 Enhanced Noise Reduction - K192819
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© 2019 General Electric Company - All rights reserved
GEHC Imaging strengths drive strong customer experience

Drivers of our position Customer net promoter score1


Long track record (and pipeline) of bringing leading
innovations to market
GEHC Imaging
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Leader in digital solutions, both clinical and operational

Leading commercial organization with deep technical


and clinical expertise

All other 13 >2X


At scale and global supply chain network Imaging players

Global service network and reputation

1 Source: GE Global Market Pulse Study 2019, double-blinded, N=1286, 14 countries 25


© 2019 General Electric Company - All rights reserved
Five priorities to drive Imaging growth and value creation
Continue to drive • Track record of customer-valued innovation
innovation • Increasing R&D spend and productivity…driving higher NPI vitality
leadership • 20+ new products planned annually in 2020 and beyond

• Digital solutions on Edison platform (across device, edge, cloud)


Expand digital
solutions
• Focus on AI-enabled smart devices (e.g., Revolution CT Apex)
• Additional clinical and operational decision support apps

Accelerate service • Focus on meeting strong customer demand for enhanced services offerings
growth • Continue to expand options and upgrades available when customers need them

Differentiate quality • Investing to further differentiate product quality and reliability from competitors
and customer experience • Driving industry-leading customer experience

Enhance margin • Strengthen pricing strategy and performance with supporting tools and product mix actions
and free cash flow • Continue track record of delivering $0.2B+ in cost productivity annually

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Leveraging AI across Imaging department workflow to improve
clinical and operational outcomes for customers
Scanning Diagnostics Therapy Operations

• Optimize clinical parameters • Detect / quantify findings • Streamline planning & • Insights across clinical
• Automate technologist tasks • Automate radiologist tasks procedures operations
Outcomes • Fast and accurate scans • Efficient and precise • Automate interventionalist tasks • Standardize practice
diagnostic decisions • Improving therapy planning and • More throughput and less waste
delivery
MR ViosWorks Bone Volume Reading Interventional LiverASSIST Imaging Insights

Solutions
examples

<10 min free breathing scan¹ Auto … spine identification & ~68% Complete tumor response 36% increase in exams/wk5
labeling rate vs 36% using conventional
KPIs method3
25 min MR time saving¹ < 5 sec to label the spine 11% procedure time reduction4 4 week less patient wait time5
300mm volume or less2

1 With ViosWorks, possible to perform a 30 min MRI exam and obtain report in minutes. Data on file at Arterys, based on internal study 2018 and based on internal study with semi-automated segmentation of LV epi, LV endo, RV endo and Deep Learning
2 Source: Data on file
3 Hepatic Arterial Embolization Using Cone Beam CT with Tumor Feeding Vessel Detection Software: Impact on Hepatocellular Carcinoma Response - Cornelis et al. Cardiovasc. Intervent. Radiol. 2017.
4 Comparison of the Number of Image Acquisitions and Procedural Time Required for Transarterial Chemoembolization of Hepatocellular Carcinoma with and without Tumor-Feeder Detection Software – Iwazawa et al. Radiology Research and Practice. 2013.
5 Refers to Imaging Insights project recently led at Radiomed http://newsroom.gehealthcare.com/analytics-real-world-radiology-practice-helping-patients-exam-faster-ecr18
© 2019 General Electric Company - All rights reserved
Margin enhancement focused on mix, pricing, and cost productivity
Strengthen mix by accelerating
highest margin segments… …and continuing track record of cost productivity
• Capital allocation against most • $0.2B product and service cost productivity1 in 2018
strategic product/region segments
• Delivering 1K+ productivity projects in 2018
• Product and commercial – 80+ cost-out events
outperformance in those areas
– 200+ should-cost projects

…improve pricing performance • Key drivers:


through innovation & rigor… – New products (e.g., Design-to-Value, “should cost” analysis,
lower cost electronics, consolidate platforms, increase shared
• “Valued” NPI vitality
parts)
• Compelling value props – Forward production (e.g., improve manufacturing scale up,
• Enhanced pricing discipline and standardize install work, proactively redesign to lean assembly)
supporting tools – Installed base & services (e.g., improve service parts reliability,
increase remote fix connectivity, accelerate “mid life” upgrades)

1 Net material cost reduction, logistics, factory productivity and other product and service cost productivity, partially offset by annual wage inflation
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© 2019 General Electric Company - All rights reserved
Summary for Imaging
Revenue
($ in Billions) How we will grow Imaging

+4% CAGR Continue to drive innovation leadership


8.8
8.4
8.1

Expand digital solutions


Services

Accelerate service growth

Equipment
Differentiate on quality and
customer experience

2016 2017 2018


Enhance margin
Outlook: LSD/MSD in near- to mid-term

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© 2019 General Electric Company - All rights reserved
Ultrasound

Anders Wold
President and CEO,
Clinical Care Solutions

© 2019 General Electric Company - All rights reserved


Ultrasound has grown into an integral part of many care pathways
Making ultrasound for everyone, everywhere a reality
Screening, triage, & evaluation | Deeper diagnosis | Therapy guidance | Monitoring

480,000+ $3B 1,300


Installed Base Revenue from active patents
Equipment & Services
40+ products and applications across the entire ultrasound marketplace

Radiology/ OB/GYN & Cardiovascular Point Primary / Breast


Vascular Women’s Health of Care Emerging Care Screening
Market position #1 #1 #2 #2 #1 #1

Extraordinary images. Clinical focus. Edison enabled A.I.


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© 2019 General Electric Company - All rights reserved
Ultrasound is an attractive ~$8B equipment and services market

Global Ultrasound equipment market


Orders ($ in Billions) Drivers of Ultrasound market growth:
Fast adoption and expansion of new users via
• Real-time scan and diagnostics/decision support
• Portability → available wherever the patient is
• Low cost → expansion across providers/geographies
6.1 6.4
5.7 • No ionizing radiation

Rapid innovation in clinical care


• NPI rhythm drives fast replacement cycle
• Shock, structural heart, guiding therapies, triage tool
2016 2017 2018

Outlook: 4% growth in near- to mid- AI makes Ultrasound more precise and simpler
term, LSD/MSD in developed markets, • Automate complex tasks, work flow. Reduces user and patient variability
MSD in developing markets

Source: All GE internal market size estimates above aggregated from regional reporting on competitive market activity, import/export data (when available), market studies and third-party published reports
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© 2019 General Electric Company - All rights reserved
Leader across a broad portfolio of products with range of customers

Drivers of our position:


• Clinical specialization that drives specific
innovations for care providers
Incredible
• Broad portfolio: 40+ products innovation
• 125+ probes: advanced tech, all applications
across a broad
portfolio
• Platform technology provides advantages in
speed to market and profitability, across
value to premium segments

• Digital innovations and AI to increase


diagnostic accuracy and in-procedure
workflow efficiency

• Go-to-market model tailored to clinical


specialties
Full Console Portable Compact Tablet Pocket-sized Probes

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© 2019 General Electric Company - All rights reserved
Extending reach and innovation along continuum of care
Growth priorities

Core growth New users Services Digitally-led solutions


• Commercial expansion • Expansion of clinical markets • Specialty-specific users’ clubs • Fetal Brain, fetal heart auto
• Annual cycle of NPIs, >15 average • Point of Care – 25+ applications • Proprietary digital tools measurement
each year, examples: • Primary Care – entry level • Training and accreditation • Shock toolkit
– Cardiovascular: Vivid™ E95 • Education is key • Probe services • Breast lesion detection
– Women’s Health: Voluson™ E10 • Ultrasound workflow
– General imaging: LOGIQ™ E10 enhancement

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© 2019 General Electric Company - All rights reserved
Strong product vitality and proven cost reduction support margin
expansion
KPIs (2018) Key drivers embedded in culture Annual goals
NPI vitality - Competitiveness >15 NPIs
NPI Vitality: • Platform based - fast and frequent NPI

35%+ •

Refreshed HW - faster cost reduction
Latest technology – higher performance/price protector

Cost reduction in All cost levers at play 8-10% cost


material spend YoY: • Global/local - High level Assembly: efficient factory reduction in
material

10% •
Dual source suppliers: sourcing advantage
Low cost country engineering: China, India, Ukraine
spend YoY

• End of life rigor: product retirement & life cycle management


• Disciplined budgeting: cost out before/embedded in NPIs
• Strategic capital allocation: High performance & low cost

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© 2019 General Electric Company - All rights reserved
Summary for Ultrasound
Revenue
($ in Billions) How we will grow Ultrasound
Innovate to grow leadership position and
expand margin
+7% CAGR
2.7
2.6 Continue to develop new uses and
2.4 new users
Services
Use our ultrasound leadership to expand
our strategic partnerships

Equipment
Increase commercial coverage and drive
service penetration in large install base
2016 2017 2018
Improve customer experience through
Outlook: MSD growth in near- to mid-term GEHC digital tools (Edison)

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© 2019 General Electric Company - All rights reserved
Life Care Solutions

Anders Wold
President and CEO,
Clinical Care Solutions

© 2019 General Electric Company - All rights reserved


Life Care Solutions (LCS): clinical care through patient journey

MONITORING
SOLUTIONS

#2

MATERNAL & ANESTHESIA & DIAGNOSTIC Parameters &


INFANT CARE RESPIRATORY CARE CARDIOLOGY Accessories
Market #1 (Anesthesia), #5 (Respiratory Care)
#1 #1 Expanding
position

Incubators, warmers, fetal Anesthesia delivery, Resting ECG, Stress ECG, Vital signs measurement,
monitoring critical care ventilation ECG Management consumables

3M+ $2.2B 1,300


LCS units in use Revenue from active patents
Equipment & Services

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© 2019 General Electric Company - All rights reserved
LCS is an attractive $6B global equipment market

Global Life Care Solutions equipment market


Orders ($ in Billions) Drivers of growth

• Digital: enterprise solutions for improved care – drives digital and

6.0 6.1 equipment sales


5.8
• Care delivery efficiency: at-scale analytics opportunity

• Acute to sub-acute: monitor the unmonitored; open up 70% of


hospital beds to monitoring

• Technology: mobility / wireless / cable-less


2016 2017 2018 • Expanding access: emerging markets
Outlook: 2-3% growth in near- to mid-term,
LSD in developed markets, MSD in developing • Accessories: Expanding into adjacent accessories segment
markets

Source: All GE internal market size estimates above aggregated from regional reporting on competitive market activity, import/export data (when available), market studies and third-party published reports
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© 2019 General Electric Company - All rights reserved
Invested to refresh LCS product portfolio with early results
Recent launches Performance Early results
CARESCAPE • Transport monitor expands portfolio:
ONE™ 1 Intra- • Optimized data continuity and patient care flexibility Eur’19
hospital • GEHC and partner developed parameters +10%
transport

Central • Scalable, centralized surveillance cardiac telemetry $41M orders -


Monitoring Unit • Coordinated clinical communication - effective care
(CMU) response new category
2.5X MAC VU360™ • GE’s fastest ECG workstation - redefines “premium”
Increase in NPI segment +5-6 pts
investment • Smart algorithm auto-capture: high-quality ECG margin gain
2016 to 2019

B105/B125 • High quality care at affordable price China ’19E


Patient • Scalable across networks
Monitors
+11%
• Patient monitor integrates with other GE devices

Aisys CS² • Fully digital anesthesia Carestation for seamlessly Enabling


Carestation™ connectivity
v.11 • Over 300 high-fidelity data points captured with every
analytics
breath

1 Pending regulatory clearance in U.S. and China


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© 2019 General Electric Company - All rights reserved
Digital transformations are creating new business models
Central Monitoring Unit Mural

• Central surveillance of cardiac telemetry patients • Scalable, enterprise digital teleHealth platform Partnering to develop
Partnering to develop solutions that matter
• Flexibility to decide which alert notifications to solutions that matter • Edison backbone drives efficient, fast development
assign to caregiver, without phone calls
• teleICU and care protocol compliance
• Platform is set-up to incorporate AI tools for
additional value-add • Launching now – rapidly expanding global funnel
• $41M+ orders (USA) in 8 quarters – new category

teleHealth allows hospitals and health systems to care for patients across departments and geographies

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LCS is building momentum in cost productivity

KPI Key drivers – developing culture


Cost reduction in material spend YoY
• NPIs accelerating from zero to 10 NPIs, platform based
• Material cost out from 3% to 7% per year

2X 7%

3%

2016 2018

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Summary for Life Care Solutions
Revenue
($ in Billions) How we will grow LCS
Building platforms to refresh portfolio; fast
and frequent NPIs
+6% CAGR
2.2
2.0 2.1 Global growth – expanding outside US and
new care areas
Services

Digital innovations, analytics and


teleHealth

Equipment
Driving cost productivity for expanding
value offerings and margins
2016 2017 2018
Expand services for IB and accessories
Outlook: LSD/MSD growth in near- to mid-term offerings for new markets

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Services

Jan Makela
Vice President & CEO,
Healthcare Services

© 2019 General Electric Company - All rights reserved


Delivering value to customers throughout the life of equipment
Reported Services revenue
($ in Billions) HCS Services growth drivers
✓ Improving contract capture at time of equipment purchase or post-warranty
8.0 8.2 8.4
LS
✓ Investing in on-line tools for quotation, renewals, parts sales ... IB & lead management

HCS
✓ Expanding clinical & productivity analytics solutions … driven by machine data

2016 2017 2018 ✓ Introducing more clinical upgrades and subscription services to enhance position as
trusted partner
LSD growth near/mid term
✓ Driving GoldSeal™ growth … upgrade to latest specs & resell
Example lifetime of a system:

Traditional Warranty
Services support Service Contract Non-contract parts & labour

Value-added Applications, clinical training Upgrade of Console GoldSeal™ End of


Offerings and education and/or Hardware repurchase Life Support
Purchase New Unit

0 ~1 year Time End of Life

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Services … local, globally for customers and patients
43 customer call centers, 55 parts warehouses, 31 repair centers & 8K field service engineers
On-demand Multi-vendor & Upgrades &
Contractual services
parts & services biomed services refurbishment

• 1 – 5 year contacts, uptime • New and repaired parts; • Capability to serve GE and • Upgrades of consoles &
guarantees sales online, phone & direct non-GE IB, longer term image processing elements
• Remote fix, <24 hr. • Break/fix, ~90% of parts contracts • Lifecycle services, including
response, 79% of issues shipped within 24 hours • Demonstrate value of GE buy-back and resell
resolved 1st call equipment & services

Delivering Maximize
Flexibility & Operational
peace of customers’
quality simplicity
mind return

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Productivity improvements for customers translates to improved
operational efficiencies for our services team
Constant visibility to customer experience… …informs our execution priorities
Product • ↑ Reliability by design
Unplanned
• ↑ Condition monitoring
repairs
• Design for serviceability

Resolved on first call Connectivity • ↑ Remote diagnosis & fix


Drivers of • Remote download & install
customer
experience • ↑ Predictive maintenance
Equipment
connectivity
Data & • Online FSE game plan
infrastructure • FSE Smart Dispatch
Speed, including
• Global IT infrastructure
remote

Customer • Value-add in-contract tools


Constantly Net Promoter success • Premium upsell functionality
pulsing … Score
• SaaS models, cyber security

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US and Canada

Everett Cunningham
President and CEO,
GE Healthcare US and Canada

© 2019 General Electric Company - All rights reserved


US & Canada
HCS Equipment market1 (TAM) $10B, growing 3% CAGR ’16-’18 22k employees, 14 plants, in-country repair
HCS Revenue Customers Growth drivers
Nationals • US Healthcare spend expected to grow by 6%
Large hospital systems in 2020
$7B • Strong equipment &
service franchises
Region progressives • Medicare payments shows continued trend
• Maintaining market Large regional health systems of reimbursement reduction in ‘20
leadership
• Hospital consolidation leading to slower
Regional traditionals
decision making & increased purchasing
2018 Small regional health systems
power

Academics • Trend for bigger and more complex deals …


Imaging Academics health systems customers seeking long-term partnerships
Ultrasound
Life Care Solutions Non hospital • Cybersecurity growing importance among
Services Non acute care systems customer base. Therapy guidance growth.
Digital

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1 Source: Imaging, Ultrasound and LCS markets measured in equipment order $; all others based on revenue $
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Partnerships that deliver outcome based solutions

Central Monitoring Unit

Greenfield planning & design: 2008-2014


Centralize: telemetry
Partnered to optimize imaging HUB
monitoring
workflow & tech solutions matched
with customer needs

Clinical readiness: 2015-2029


Digitize: escalations
Equipment & service partnership with long- to nurses
term technology certainty, lower life cycle
cost & higher utilization
Clinical

Workflow
Operational optimization: scalability and beyond
Scale: multi-facility,
off-site
Command Center™ & X-ray apps
improving capacity while reducing
patient waiting time

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US & Canada growth strategy
Revenue outlook
($ in billions) Execution priorities

• Add “feet on street” aligned to high return segments


LSD / MSD
$7B
• Better align field teams to evolving customer needs

• Differentiate through outcome-based solutions, financing

• Enhance lifetime value for customers: upgrades, services

2018 Near-/mid-term • Invest in tools, analytics & insights for precision selling

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Europe

Catherine Estrampes
President and CEO,
GE Healthcare Europe

© 2019 General Electric Company - All rights reserved


Europe including RCIS
HCS Equipment Market1 (TAM) $6B, growing 5% CAGR ’16-’18 12k Employees, 12 Plants, in-region repair
HCS Revenue Customers Growth drivers

Strategic • Increased demand driven by


• Academic Hospitals aging population, shift to chronic
~240
• Large Pan- European Accounts
$3B Private Groups • Emerging market growth
X
Strong equipment & large • Large national & EU programs in
service franchises oncology, cardiology
Market movers
X
2018 ~7,000 • Private market expansion, new
• National
medium Hospitals
Accounts procurement models
• Medium Size Private
• Aging installed base – 20% of
Imaging
Imaging equipment >10 years
Ultrasound
Local Leaders
Life Care Solutions ~24,000 • Digital and AI to increase
• Private clinics
Services
Accounts productivity
• small public hospitals
Digital

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1 Source: Imaging, Ultrasound and LCS markets measured in equipment order $; all others based on revenue $
© 2019 General Electric Company - All rights reserved
Europe: GE positioned to deliver full solutions
Driving efficiency and quality Integrating AI into healthcare Building innovative partnerships

• Leader in advanced diagnostic • Academic, clinical and Industry • R&D laboratory focused on driving
imaging, outpatient and cancer care collaboration digital benefits across care
pathways
• $100M multi-year, enterprise-wide • Established by the University of
technology partnership Oxford with 15 NHS trusts • Data, AI to optimize operating
rooms and contrast media dose
• Networked imaging fleet w/ • Data hub for collection, storage
advanced performance analytics and management of protected data • 6-year upgrade of imaging fleet
combined with AI
• Full solution: equipment + service • Developing new AI Clinical
+ digital + contrast media algorithms • Deployment through innovative
business model

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© 2019 General Electric Company - All rights reserved
Europe growth strategy
Revenue outlook
($ in billions) Execution priorities

• Continue to expand in high growth markets, while


maintain strong momentum in mature

LSD / MSD • Increased specialization and grow care pathway


$3B partnerships

• Expand AI and digital-enabled transformation

• Enhance lifetime value for customers: upgrades, services,


fleet & financing offering
2018 Near-/mid-term
• Continued margin expansion

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China

Yihao Zhang
President and CEO,
GE Healthcare China

© 2019 General Electric Company - All rights reserved


China
HCS Equipment Market1 (TAM) $7B, growing 12% CAGR ’16-’18 ~6k Employees, 4 Plants, in-country repair
HCS Revenue Customers Growth drivers

• Aging population … 165 million+


Public L3 ~2,500
greater than 65 yrs. old
$2B #1 market leader Hospitals
• Strong equipment &
service franchises • 2030 National Healthcare
strategy … healthcare spend
Public L2 ~9,000 growing from 6.5% of GDP to
• Double digit growth
#1 market leader Hospitals 8~9% by 2030
2015-2018
• Insurance coverage … >95%
2018
Public L1 & Other basic / comprehensive / equal
Hospitals, clinics,
#1 market leader & other care settings
Imaging • Rising affordability … 700 million
Ultrasound
in middle class by 2020
Life Care Solutions Private ~20,000 • County capability focus … 500 L2
Services #1 market leader Hospitals
hospitals with upgrade plans
Digital

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SOURCE: Imaging, Ultrasound and LCS markets measured in equipment order $; all others based on revenue $
© 2019 General Electric Company - All rights reserved
China: GE positioned to deliver full solutions
Local Private Partnership

+ +

• End-to-end capability, launching • Investing in sales force … enhancing • Partnering with County Hospital Alliance
China NPIs across modalities dedicated team including sales, product for L2 upgrade with chest pain + stroke
specialists, and enterprise account center & cancer screening solutions
• R&D team with 1,000+ engineers, managers
including senior roles • Collaborated with NHC to release
• Full solutions … Offering full equipment, National Neuro Imaging Guideline to
• 4 plants + local supply chain with financing, digital solutions and services. standardize CT & MR scanning for stroke
~300 strategic suppliers
• Prioritizing top strategic accounts • Driving hospital training through China
positioned to grow over long term Society of Radiology

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China growth strategy
Revenue outlook
($ in billions) Execution priorities

• Expand sales coverage with clinical specialization

MSD/HSD
• Enhance lifetime value proposition and customer
experience: services, upgrades

• Continue to strengthen local capabilities, NPI launch


~$2B
• Drive innovative value creation through digital

2018 Near-/mid-term • Investing in team: key talents, training, lean culture

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Operations and Financials

Monish Patolawala
CFO, GE Healthcare
VP Operational Transformation, GE

© 2019 General Electric Company - All rights reserved


Strong financial position to drive shareholder value
($ in billions)
GE Ex-
Healthcare Biopharma
‘19 est. ‘19 est.3
Global Leadership across Healthcare Revenue $19.8-20.0 $16.5-16.7
Scale Systems and Pharma Diagnostics
markets to drive growth

Trusted Significant portion of recurring Recurring revenue 45%+


Partner revenue

Clear Visibility to continued operating Segment margins 19.3-19.6% 14.4-14.7%


Strategy margin expansion

Operating Strong operating cash flow FCF conversion1* 80-90%+ 60-70%+


Rigor generation
Core2 FCF conversion 100%+ 90-100%+
1 FCF conversion: segment FCF / segment net income, adjusted to include restructuring expense
2 Core FCF conversion: FCF conversion excluding the effects of reductions (In total approximately $0.6B) during 2019 in sales of customer receivables & supply chain financing relative to prior years, one-time tax items and separation costs
3 Adjusted to exclude Biopharma, as reported within GE
* Non-GAAP
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Key metrics
2019 Estimate, including Biopharma, Reported / Organic1 VPY

Orders Revenues* Segment profit*

$20.9 – 21.1B $19.8 – 20.0B


~$3.8 – 3.9B

0-1% / ~3%Org 0-1% / ~3%Org 4-6% / 6-8%Org

2019E 2019E 2019E

Free Cash Flow2* $ Segment rate

$2.3 - 19.3-
2.5B 19.6%+
100%+ core ~0.4 - 0.7 pts
FCF conv.3 VPY organic

1 Organic excludes impact of foreign exchange, acquisitions, and dispositions; Revenue: GAAP of $19.8B-20.0B with approx. $(0.5)B reduction due to adjustments; Segment Profit: GAAP of $3.8B-3.9B with approx. $(0.1)B reduction due to adjustments
2 FCF conversion: segment FCF / segment net income, adjusted to include restructuring expense
3 Core FCF conversion: FCF conversion excluding the effects of reductions (In total approximately $0.6B) during 2019 in sales of customer receivables & supply chain financing relative to prior years, one-time tax items and separation costs
* Non-GAAP

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Supply chain … global scale, technical capability and low cost
38 manufacturing sites in 16 countries with 3,400 Supplier partners

Sourced parts Component manufacturing Vertical integration Chemical processes


Best quality material Protecting IP and Localized supply chain from Highest quality and
through dual sourcing manufacturing at scale sourcing to installation security of supply

Ultrasound Computed Tomography


Probes Detectors Contrast Nuclear
Media Tracers

• $4B spend… single/sole • Unique mfg technology, • Global mfg footprint… low • Contrast agents scale…
sources at 76% producing “crown jewels” cost, in region / for region 85mm doses / year @ 
• Regional … ¼ in low cost at scale • Localized value stream cost
country • Global… US, Europe, • Quality and regulatory • Nuclear imaging … 24
Japan, China, India expertise hours from cyclotron to
patient
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How we’re running GE Healthcare
Targets to Our approach
Owner Jump off point Goal YTD 1Q 2Q 3Q OCT 4Q
Improve
X% Prior Year X% X% X% X% X% • “Bowler” metrics deployed for all KPIs
Metric 1 Name X% X% X% Plan X% X% X% X% X% – 14 standard KPIs focused on:
X% Actual X% X% X% X% X% • Safety: patient and employee
## Prior Year ## ## ## ## ## • Customer: reliability and delivery
Metric 2 Name ## ## ## Plan ## ## ## ## ## • Organic growth and margin
## Actual ## ## ## ## ## expansion
## Prior Year ## ## ## ## ## • Cash generation
Metric 3 Name ## ## ## Plan ## ## ## ## ## • Transparent: Corporate sees what we
## Actual ## ## ## ## ## see
## Prior Year ## ## ## ## ## • Pulsed often … daily, weekly and monthly
Metric 4 Name ## ## ## Plan ## ## ## ## ## data-driven operating mechanisms
## Actual ## ## ## ## ## • Embracing “reds” to drive root cause
analysis and countermeasures
## Prior Year ## ## ## ## ##
Metric 5 Name ## ## ## Plan ## ## ## ## ##
## Actual ## ## ## ## ##
## Prior Year ## ## ## ## ##
Metric 6 Name ## ## ## Plan ## ## ## ## ##
## Actual ## ## ## ## ##

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Expanding segment margins
($ in billions)

Segment Profit Our approach


1 Improving capital allocation
19.3-19.6% • Targeted increases in R&D and programs to highest returning
18.7% product lines and projects, reductions to lower ROI segments
Segment
• 3X investment in product cost out, digitization / automation vs.’15
profit % 16.3%
• Exited low ROIC businesses ... Clarient (‘15), Dharmacon (’17),
Value Based Care (‘18)
3.8-3.9 2 Driving product & service productivity
Segment 3.7
profit $ 2.9 • Doubled rate of productivity through investments, accountability
• Delivering $0.3B product and service productivity / year (ex-Tariffs)
3 Accelerated pace of NPI, investing in digital capabilities
• Targeted investments in priority products, AI/analytics, digital
platform and partnerships
2015 2018 2019E
4 G&A efficiency
Ex-Biopharma 14.4-14.7%
(est) • Reduce ERPs, improve digital toolsets,  spans /  layers

Reported margins up ~3+ pts from ’15 … Targeting 25 – 75 bps per year improvement

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Healthy funnel of investments with strong returns
Strong project funnel Rigorous capital allocation Examples of outcomes

New products & services


Imaging NPI average 6 pts  cost vs. predicate
~10% Warranty savings rate in ‘18

Logistics Material cost reduction


Factory & Service 7% material cost out in ’18
Material Deflation Single/sole sources down (2) pts since ‘15

Design Engineering Service productivity


Automation/digitization, footprint 1st call resolution up 1 pt. vs. ’18 to 79%
Labor hours per system under contract  2 pts YTD
New Products, Apps or Services

Safety and customer reliability G&A efficiency


Consolidated 49 ERPs → 3 Strategic ERPs
~3k+ projects in funnel Prioritized by ROI “Touchless” order: $(22)M inventory

Investing $1.5B per year1


1 - Includes R&D expense, externally funded R&D, capitalized software, and other program investments 66
© 2019 General Electric Company - All rights reserved
Investments that drive growth
($ in billions)

Spend profile Priorities aligned to highest Returns


Ex-Biopharma
• Continued NPI vitality with 61 launches in 2018, including
product innovation for local needs
R&D expense
% of sales • Balancing short and long term returns – next generation
~5% detector technology, Nuclear tracers in immunotherapy &
mobile technology

Total Engineering efforts1 • Digital spend to support AI, cloud-based image visualization &
% of equipment sales Platform capabilities

~9-10% • Improved reliability, design for value, cost to serve

• Global, local player with engineering COEs in best cost countries

1 - Includes R&D expense, externally funded R&D, and capitalized software 67


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Product and Service cost out
($ in billions)

Cost productivity1/year
Material • Design for lifecycle cost, including manufacturing & serviceability
Ex-Biopharma
Cost • Improve dual sourcing by 6+ pts by ‘21, increased local sourcing

• Digital analytics & automation driving packaging & lane consolidation


Logistics
0.3 ~0.3 • Ocean shipments up 5 pts YTD and premium freight down (5) pts

• Consolidating plant network, assembly to best cost locations


Factory
• Lean focus: standard work, lead time reduction, inventory turnover

• Reducing events through reliability improvements & quality


Services
• Improving remote fix rate by 2 pts in ‘20

• Installation: standard work, improving parts availability


1
‘18 2
’19E Others
• Warranty: improving reliability and standardizing terms

1 Net material cost reduction, logistics, factory productivity and other product and service cost productivity, partially offset by annual wage inflation
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Lean in action: Florence MR site
At beginning of the week … .. Action Work Out held .. … by end of week

Status quo Value-stream mapped current state $70M • Pull consumption, Kanban
Inventory  • Improve TAKT execution
Inventory Turns
< Benchmark Identified

Stacked Lead time


6 months+ 30% • Improve Date Management
Productivity rate Value Stream Map: Order Operations Lead Time  • Reduced WIP
LSD Actions • (30)% LT  in 1 key change
• VSM’s completed
• 154 days LT vs. 54 days Processing Time
• 7 AM to 7 PM … intense days! $50M • 8M in Factory savings
We can be better!
Cost out • 10M in logistics opportunity
Approach we took Redesigned processes for 2020
Funnel Growth • 3M P&E avoidance
Held AWO
130 participants
Including CEO staff • Crane elimination
16
11 Teams aligned to EHS risks • Automation of key step in
Value Streams • More than 54 Kaizens implemented eliminated magnet production
Lean Experts • 109+ Kaizens logged
Onsite

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Lean goes beyond our factories

Product & • Reducing scrap & waste in plants • Further improving On time Delivery
World-class
service
• Improving service 1st call resolution rate delivery • Best-in-class Installation experience
cost out

• Improved billing quality,  disputes • VSM map of financial close process


Commercial
Functions
operations • Lean AWO in quoting processes • Optimize recruitment & onboarding

• Visual, automated KPI scorecards • Reducing lead & wait times


Daily
Inventory
management • Root cause / countermeasures training • Moving to ‘pull’ production methods

Business lean leader appointed, hands-on training through AWOs

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Free Cash Flow*
($ in billions, includes Biopharma)
2018 Working capital cash flow ’18 Cash Flow

2018 Payables Inventory


Net Earnings ex depreciation & amortization $3.3 $0.3
Working capital 0.1 $(0.2)
Unbilled receivables1 (0.2) 1 1
’17 ’18 ’17 ’18
Taxes/Other operating2 0.4
Days to Pay5 69 81 Inventory Turns7 3.6 3.4
CFOA $3.5 Better payable terms with direct suppliers Support growth, more level loading
PP&E & internal use software (0.5)
Receivables Progress collections
Free cash flow* $3.0
$(0.1)7 $0.0
FCF* Conversion %3 124%
1
Biopharma $1.1 1
’17 ’18 ’17 ’18
FCF* ex-Biopharma4 $1.9
Days Sales Outstanding8 64 59 % Equipment Backlog 4% 5%
FCF* Conversion ex-Biopharma %3 124%
Regional mix and terms improvement Driven by timing of commercial deals
1 Component of Contract and other deferred assets 2 Includes primarily deferred income taxes, service billed in advance, employee incentives, restructuring and product software capitalization
3 FCF conversion: segment FCF / segment net income ($2.4B), adjusted to include restructuring expense 4 Biopharma CFOA (GAAP measure): $1.2B – 0.1B = 1.1B Biopharma FCF (Non-GAAP)
5 (Average of Q4 and Q3 Trade Payables Balance) / (Q4 AP Purchases x 4 ) * 365 6 (Q4 Costs of Goods Sold x 4) / (Average of Q4 and Q3 Inventory Balance)
7 Includes impact of monetization 8 (Average of Q4 and Q3 Gross Trade Receivables Balance excluding Monetization) / (Q4 Sales x 4 ) * 365
* Non-GAAP
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Wrap

Kieran Murphy
President and CEO, GE Healthcare

© 2019 General Electric Company - All rights reserved


Strong Bold Investing
Healthcare growth Lean … for the
franchise … agenda… future

Significant
opportunity for
value creation Near-/mid-term financial outlook

LSD/MSD +25-75 bps 85 - 95%


Revenue growth Margin expansion FCF conversion*
per year per year

* Non-GAAP 73
© 2019 General Electric Company - All rights reserved
Financial summary
($ in Billions)

Reported 2018 2019E


Revenue $19.8 $19.8-20.0 VPY FCF conversion 2019E
Factoring & supply chain finance reductions ~(14) pts.
Segment margin % 18.7% 19.3-19.6%
Tax unusuals/timing ~(5) pts.
FCF1 conversion % 124% 80-90%+
Separation & legal ~(11) pts.
Without Biopharma 2019E
Revenue 16.5-16.7 Core FCF conversion to FCF conversion
drivers 2019E
Margin % 14.4-14.7% Factoring & supply chain finance reductions ~(20) pts.

FCF1 conversion % 60-70%+ Tax unusuals/timing ~(4) pts.

Core FCF2 conversion % 90-100%+ Separation & legal ~(9) pts.


1 Non-GAAP; FCF conversion: segment FCF / segment net income, adjusted to include restructuring expense
2 Core FCF conversion: FCF conversion excluding the effects of reductions (In total approximately $0.6B) during 2019 in sales of customer receivables & supply chain financing relative to prior years, one-time tax items and separation costs 75
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