GE’s Products and Solutions for Mongolia

Presentation 14th Annual North America – Mongolia Business Council Investor’s Conference

October 5-6, 2011

Tumentsogt (Tumen) Tsevegmid Chief Representative GE International Inc.tumentsogt.tsevegmid@ge.com

Mining Transportation Energy Healthcare Lighting

Founded by Thomas Edison in 1878

Only company from the original 1896 Dow Jones index still listed today 4 businesses operating in more than 100 countries … 125+ years Over 300,000 employees worldwide Revenue $160B (2010)Assets $ 750 billion

GE’s portfolio

• Energy

• Oil & Gas

• Water & Process Technologies

EnergyInfrastructure

• Aviation

• Enterprise Solutions

• Healthcare

• Transportation

Technology Infrastructure

• Aviation Financial Services

• Commercial Finance

• Energy Financial Services

• GE Money

CapitalFinance

• Cable

• Film

• International

• Network

• Sports & Olympics

NBCUniversal

Note: Excludes C&I segment, Corporate items & eliminations

Mongolia… Mega Trends

1. Mongolia’s mining sector driving economic growth

Mega Trends in Mongolia

• Mining sector accounts 30% of GDP, 91% of exports and 40% of Government revenues

• GDP expected to grow 5-6 x in next 10 years• US $4bn investment signed with Rio Tinto for OT

3. Substantial infrastructure needs

5. Renewable Energy policies supported

6. Improving Corporate Governance

7. Synergies between China and Mongolia

2. Rapid urbanization driving greater infrastructure needs

Supporting Facts

4. Economic diversification & value-added, local mfg & svcs will be encouraged

• ~45% of total population live in capital• Investments of US$ 9 billion needed to meet

urban housing and infrastructure needs by 2030

• Installed MW to double in 10 years to 2000 MW • Construction of 1,100 km out of total 5,684 km of

railways

• Sainshand industrial park project• Mongolian Railway policy encourages domestic

manufacturing & processing, job creation

• Renewable energy up 10% by 2020 to 200 MW• Renewable Energy Law of 2007 provides

preferential rates for power from renewable energy

• Mongolian Stock Exchange to adopt LSE platform • Mongolia is to adopt European Union (EU) standards

for its goods and services• Mongolian companies successfully launched

overseas IPOs

• Mongolia’s coal, mineral resources, renewable energy resources to address China’s energy needs

• Developing Mongolia as a significant energy exporter will create synergies of scale

Key Challenges in Energy Sector

Increasing demand for power and heat due to rapid urbanization and mining development in Southern Mongolia;

• Impact of mining - GDP will increase 5-10 times in 15 years;

• Urbanization – UB population will reach 1,6 million by 2015;

Technical Rehabilitation & Financial Sustainability

• Rehabilitation of generation, T & D assets needed urgently;

• Tariffs and financial sustainability;

Developing Access in Environmentally Sustainable Way

• About 1/3 of population still lack affordable energy access ;

• Reliable power and heat supply for UB city residents;

Financing Needs are Enormous

• Southern Mongolia – US$ 5,2 billion;

• UB development – US$ 9,0 billion;

Market opportunities in Mongolia

• 80mm tons of

mining commodities

to be transported in

5-10 years

• Substantial Mining

Vertical Sales Opp.

– OHV, motors,

electrics

• Assess opportunity

to establish mining

service JV

• Mining leasing

opportunity

• Country demand for

200-300 locomotives

in next 5-10 years

• Interest from the

Government of

Mongolia to establish

locomotive

assembly/

maintenance JV to

supply next 15 years’

locomotive needs

• GE Capital

products and

solutions

• Several immediate

hospital equipment

supply opportunities

• Lighting

infrastructure

opportunities under

discussion

• Future airplane

leasing opportunity

Mining

• Current installed

capacity to be

doubled in 5 years

(from 800MW to

2200MW in 5 years;

no reserve capacity)

• Potential for large-

scale power

generation for export

(>10GW)

• Opportunities for gas

turbine, Jenbacher,

I/S, wind, crude oil

and digital energy

• Smart energy for

residential and

telecom

1 Energy

(PG)2 Rail3 Other4

The biggest water treatment platform in the world

service RO UFproject

Home spring

EDR

membraneEDI

Water

chemical

Mobile water monitoring

1999

Glegg

2002

Betz

2003

Osmonics

2005

Ionics

2006

Zenon

process

chemical

GE Water & Process Technologies Overview

Chemical & Monitoring Solutions

Industrial ProcessChemical ProcessWater Services

Service delivery and relationship continuity are key… people are the differentiator - technology is the enabler

Analytical and Monitoring

Solutions

Dust ControlMaterial Handling

Untreated Treated

Reduce employee and equipment exposure to airborne dust.

Road Dust

Dust Control

Minimizes need for water trucks and graders allowing them to be used

where they’re needed.

Untreated Treated

GE Capital

Commercial Lending & Leasing

ConsumerEnergy

Financial Services

CommercialAviation Services

Real Estate

Deep domain expertise & strong risk management

Middle market

lending &

leasing

Financing for

energy & water

industries

Commercial

aircraft leasing

& financing

Consumer &

retail financing

Debt & equity

financing for

commercial

real estate

’08 revenue

$26.7B

’08 revenue

$3.7B

’08 revenue

$4.9B

’08 revenue

$25.0B

’08 revenue

$6.6B

GE Energy Financial Services

25+ Years

Experience

in Energy Finance

Investment Size

$20MM - $125 MM

Expertise in

Renewable

Energy

Global equity

investor and lender

for the

energy and

water industries.

US$20 Bn.

Assets

22 GW Portfolio

Singapore HQ for SE & E Asia

Greenfield &

Operating

Assets

• Drilling/production for … land, offshore, subsea

• LNG and pipelines

• Refining/petrochemical

• Industrial power gen

• Complete lifecycle services

GE Energy/Industrial Solutions

• Power generation

• Renewable energy

• Gas engines

• Nuclear

• Gasification

• Water treatment and process chemicals

• Industrial Solutions

• Power Generation Services

• Digital Energy

• Measurement & Control Solutions

• Environmental Services

Employees: 66,000 • ‘09 revenue: $37B • Operating in 140

countriesPower & Water Oil & GasEnergy Services

Industrial Solutions Global Portfolio

• AC & DC Motors up to 100,000

HP

• Energy Saving AC Motors

• Severe Duty AC Motors

• Explosion Proof AC Motors

• Pump & Compressor Motors

• Generators up to 75MVA

• Power Delivery Services

• Arc Flash Studies

• Motor & Generator Repair

• Hydro Repair & Services

• Drive System Services

• Turnkey Project Management

• Molded Case Breakers

• Air Circuit Breakers

• Transformers

• Motor Control Centers

• LV / MV Switchgear

• Switchboard

• Submetering

• Trip Unit Systems

• Intelligent Switchgear

• Drives

• Motor Starters

• Switches & Indicators

Electrical Distribution & Motor Control

Industrial Services & Power Utilization

Motors &Generators

Source: Newcom Group Presentation

• A diversified investment company focused on long-term investment opportunities in or

around the territory of Mongolia– Established in 1993, Mongolian-owned, private company

– One of handful companies with modern mgmt/governance in Mongolia

– Both a developer of new dynamic businesses and portfolio owner of established companies

– Half a dozen subsidiaries and invest companies, $200+MM revenue

– Total employees: 1,700+

• Largest network infrastructure offering bandwidth wholesale, leased line services

• Annual turnover $150MM

• 2,500km fiber optic in Ulaanbaatar

• Over 1MM subscribers (37% of population)

• 56% share (3x more than next biggest competitor)

• Supporting businesses include Mobinet, Mobifinance and Newtel

Major subsidiaries highlights

• Domestic aviation service provider

• Revenue $15.6MM; EBITDA margin 10% (’09)

• 4 SAAB 340B; 180 employees

• 75% of domestic civil aviation

• Mining sector to drive air transport demand

–30% growth in charter flights for 5 years

• Projected revenue $86MM in 5 years, 23% EBITDA margin

• Salkhit Wind Park

–1st IPP and wind generator

–50MW capacity

–Annual energy production of 122,000MWh

–Operational in 2012

–PPA 23 years, at 9.5 cents/kWh (National Grid)

–Total project cost $80MM

• Newcom also plans to build 300MW+ wind park in South Gobi region

Newcom Group overview