Ge Financial Analysis

Median: 17.0 P/E RATIO RATIO YLD 20.90 P/E 13.5(Trailing: 14.4) RELATIVE 0.85 DIV’D 3.6% 37.3 32.7 38.5 32.1 42.2 33.9 38.5 12.6 17.5 5.7 19.7 13.8 21.7 14.0 23.2 18.0

VALUE LINETarget Price Range 2015 2016 201780 60 50 40 30 25 20 15 10 7.5

3 3 3

Lowered 12/7/12 Lowered 3/13/09 Raised 11/2/12

High: Low:

53.6 28.5

41.8 21.4

BETA 1.20 (1.00 = Market)

Ann’l Total Price Gain Return High 45 (+115%) 23% Low 30 (+45%) 13% Insider Decisions to Buy Options to Sell F 0 0 0 M 0 0 0 A 2 0 0 M 0 0 0 J 0 0 0 J 0 0 0 A 1 0 1 S 0 0 0 O 1 0 0

2015-17 PROJECTIONS

LEGENDS 10.5 x ″Cash Flow″ p sh . . . . Relative Price Strength 3-for-1 split 5/00 Options: Yes Shaded areas indicate recessions

Institutional Decisions1Q2012 2Q2012 3Q2012 752 733 684 to Buy to Sell 725 735 785 Hld’s(000)564092152654775689752

% TOT. RETURN 12/12Percent shares traded 12 8 4THIS STOCK VL ARITH.* INDEX

1 yr. 3 yr. 5 yr.

21.2 52.6 -31.0

17.4 40.1 40.9

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 8.02 9.28 10.24 11.33 13.07 12.69 13.21 1.12 1.25 1.54 1.77 2.06 2.14 2.12 .73 .83 .93 1.07 1.29 1.41 1.51 .32 .36 .42 .49 .57 .64 .73 .24 .22 .21 .21 .26 .29 .24 3.15 3.52 3.96 4.32 5.08 5.52 6.39 9867.3 9793.8 9813.9 9854.5 9932.0 9925.9 9969.9 19.4 25.1 30.3 35.9 40.1 30.8 20.7 1.22 1.45 1.58 2.05 2.61 1.58 1.13 2.2% 1.7% 1.5% 1.3% 1.1% 1.5% 2.3% 131698 26.9% 5998.0 15133 19.9% 11.5% 206819 140632 63706 Pfd. Div’d None 7.4% Common Stock 10,486,300,000 shares 23.8% MARKET CAP: $219 billion (Large Cap)

12.5% CURRENT POSITION 2010 2011 9/30/12 47% CAPITAL STRUCTURE as of 9/30/12 Total Debt $431.4 bill. Due in 5 Yrs $210.0 bill. LT Debt $311.0 bill. LT Interest $15.0 bill. (Total Interest Coverage: 2.3x) (71% of Cap’l) Leases, Uncapitalized $1.0 bill. Pension Assets-12/11 $50.5 bill. Obligation $72.1 bill. Pfd. Stock None ($MILL.) Cash Assets Receivables Inventory (LIFO) Other Current Assets Accts Payable Debt Due Other Current Liab. 122896 337267 11526 -471689 14657 117959 24101 156717 131875 307470 13792 -453137 16400 137611 26995 181006 134180 289558 16022 -439760 15851 120435 26437 162723

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15-1718.20 3.65 2.50 1.12 1.40 17.85 10300 15.0 1.00 3.0% 187400 32.0% 11700 25750 25.0% 13.7% 340000 320000 184000 7.0% 14.0% 8.0% 45%

13.33 2.24 1.55 .77 .97 7.87 10063 18.1 1.03 2.7% 134187 27.8% 6956.0 15589 21.7% 11.6% 238969 170004 79180 7.4% 19.7% 10.0% 49%

14.44 2.38 1.61 .82 1.24 10.47 10586 20.5 1.08 2.5% 152866 26.8% 8385.0 16819 17.9% 11.0% 287826 212670 110821 6.3% 15.2% 7.7% 49%

14.28 2.56 1.72 .91 1.38 10.43 10484 20.5 1.09 2.6% 149702 30.6% 8538.0 18275 17.4% 12.2% 184959 212281 109354 7.1% 16.7% 8.2% 51%

15.90 17.30 2.90 3.28 1.99 2.20 1.03 1.15 1.62 1.79 10.93 11.57 10277 9987.6 17.3 17.2 .93 .91 3.0% 3.0% 163391 32.5% 9158.0 20666 16.1% 12.6% 235281 260804 112314 6.7% 18.4% 9.1% 50% 172738 35.1% 10278 22468 15.5% 13.0% 244405 319015 115559 6.4% 19.4% 9.5% 51%

17.32 2.81 1.78 1.24 1.52 9.93 10537 15.7 .94 4.4% 182515 31.1% 11492 18089 5.5% 9.9% 254715 330067 104665 5.6% 17.3% 5.4% 69%

14.70 2.07 1.03 .61 .81 11.00 10663 13.0 .87 4.6% 156783 25.4% 10636 11434 -7.3% 316579 338215 117291 4.6% 9.7% 2.1% 79%

14.15 2.13 1.15 .46 .92 11.20 10615 14.4 .92 2.8% 150211 26.8% 10013 12623 7.4% 8.4% 314972 360681 118936 3.9% 10.6% 6.6% 38%

13.93 2.28 1.31 .61 1.20 11.01 10573 13.9 .88 3.4% 147300 30.3% 9185.0 14880 27.4% 10.1% 272131 315832 116438 4.8% 12.8% 7.2% 43%

14.10 2.35 1.50 .68 1.35 11.95 10425 13.5 .85 3.4% 147125 30.8% 9050 15640 25.0% 10.6% 282500 310000 124600 5.5% 12.5% 7.0% 45%

14.55 2.60 1.70 .76 1.35 12.65 10400

Revenues per sh ‘‘Cash Flow’’ per sh Earnings per sh B Div’ds Decl’d per sh C■ Cap’l Spending per sh Book Value per sh D Common Shs Outst’g E Avg Ann’l P/E Ratio Relative P/E Ratio Avg Ann’l Div’d Yield Revenues ($mill) Operating Margin A Depreciation ($mill) Net Profit ($mill) Income Tax Rate Net Profit Margin Working Cap’l ($mill) Long-Term Debt ($mill) Shr. Equity ($mill) D Return on Total Cap’l Return on Shr. Equity Retained to Com Eq All Div’ds to Net Prof

151050 31.1% 9550 17680 25.0% 11.7% 293000 315000 131500 6.0% 13.5% 7.5% 44%

BUSINESS: General Electric Company is one of the largest & most diversified technology and financial services companies in the world. With products ranging from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing, and industrial products, it serves customers in more than 100 countries. 2011 research & de-

velopment outlays: $4.6 billion, 3.1% of revenues; 2011 international sales: $77.5 billion, 52.6% of total top line. Employs approximately 301,0000. Officers & directors own less than 1% of common stock; BlackRock, 5.0% (3/12 Proxy). Chairman & CEO: Jeffrey Immelt. Incorporated: NY. Address: 3135 Easton Turnpike, Fairfield, CT 06828. Telephone: 203-373-2211. Internet: www.ge.com.

General Electric has been in the headlines of late due to rumors it is on the ANNUAL RATES Past Past Est’d ’09-’11 acquisition trail. Word around Wall of change (per sh) 10 Yrs. 5 Yrs. to ’15-’17 Street is that the industrial behemoth is in Revenues 1.5% -1.0% 4.5% late-stage talks to buy Italian aerospace ‘‘Cash Flow’’ 1.0% -3.5% 9.5% Earnings -1.0% -8.0% 14.0% parts supplier Avio, which is owned by Dividends –9.5% 13.0% European private-equity firm Cinven. Avio Book Value 8.5% 1.0% 8.0% makes components for commercial and QUARTERLY REVENUES ($ mill.) F CalFull military jet engines, and propulsion sysendar Mar.31 Jun.30 Sep.30 Dec.31 Year tems for satellite launch vehicles.

The two 2009 38411 39082 37799 41438 156783 companies are already in bed on a number 2010 36305 37193 35692 41529 150211 of high-profile aircraft engine builds, and 2011 35938 36199 36043 39120 147300 Avio’s roughly $2 billion in annual reve2012 35182 36501 36349 39093 147125 2013 36050 37650 37500 39850 151050 nues could help jump-start the pedestrian sales growth that GE has been enduring of EARNINGS PER SHARE B CalFull late. A $4 billion price tag is believed to be endar Mar.31 Jun.30 Sep.30 Dec.31

Year all it will take to get this deal done. Out2009 .26 .26 .22 .28 1.03 put at Airbus and Boeing is on the rise, so 2010 .21 .30 .29 .36 1.15 we think this pact would be a wise and 2011 .31 .33 .30 .37 1.31 2012 .34 .38 .36 .42 1.50 timely endeavor. 2013 .36 .41 .40 .53 1.70 Gains made in 2013 will predominantly be driven by GE Industrial. Organic QUARTERLY DIVIDENDS PAID C■ CalFull industrial revenues should climb 2%- 6% endar Mar.31 Jun.30 Sep.30 Dec.31

Year this year (that number would be as high 2009 .31 .31 .10 .10 .82 as 9% if not for foreign exchange fluctua2010 .10 .10 .10 .12 .42 tions). Cost containment and competitive2011 .14 .14 .15 .15 .58 ness will remain a primary focus and 2012 .17 .17 .17 .17 .68 should perk up margins at a number of in2013 .19 (A) Operating margin includes all expenses except interest, depreciation, and taxes. (B) Diluted EPS. Excludes nonrecuring and/or discontinued items: ’00, 24¢; ’01, 4¢; ’02, 10¢; ’05, (18¢); ’06, 1¢; ’07, (3¢); ’08, (6¢); ’09, (2¢); ’10, (9¢); ’11, (7¢). Quarterly EPS may not sum due to rounding. Next earnings report due late April. (C) Divs. historically paid late January,

dustrial operations. Conversely, windrelated businesses should taper off this year, as the alternative energy credit expires. That, in addition to the continued unwinding of GE Capital — which should still be able to pay robust amounts of cash to the parent company in 2013—will probably translate to earnings growth of about 13%, to $1.70 a share. Management has the levers at its disposal to return substantial amounts of value to shareholders. No dramatic shifts took place as we headed toward the ‘‘fiscal cliff ’’. Still, GE plans on returning about $12 billion in cash to its stockholders this year via dividends and share repurchases.

The latter should equate to as much as $5 billion during the year. This figure will aid in the goal of reducing the number of outstanding shares to 10 billion later this decade. This blue chip is best suited for buyand-hold investors. It should trade on par with broader indices in the year ahead, but pick up the pace as we ramp out to 2015-2017. All the while, the stock’s yield should hover above 3%. Erik M. Manning January 18, 2013 Company’s Financial Strength Stock’s Price Stability Price Growth Persistence Earnings Predictability B++ 65 10 70

April, July, and October. ■ DRIP available. (D) Includes intangibles. In ’11: $84.7 billion, $8.01/share. (E) In millions, adjusted for splits. (F) Revenues may not sum, as reported.

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