GE Innovation Forum 2015 BRANDMAKER | 1

Global Energy Market

Kazunari Fukui & Claire LeeJuly 8th 2015

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GE Global footprint

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~300,000 EmployeesWorld biggest infrastructure company 2nd largest exporterPresent in 175 countries … 22 countries with > $1B business scale

Growth market presence (2014)

750+ Executives in growth markets

50+ service shops outside of the US

100+ Global factories

28Latin America

171North America

40Europe

4Africa

4ANZ

4ASEAN

11MENAT

1Russia/

CIS 12China

6Korea

&Japan

3India

• Our global footprint speeds and improves delivery of services, technologies and expertise

• 284 Manufacturing & Service Hubs worldwide (2013)

Bubble size = Employee numbersNumber = Manufacturing & Service shops

Mega trends driving growth

Renewables Growth

Distributed & Disruptive Tech

Increased Gas Availability

Growth in Emerging Countries

Fastest growing segment

85% of electricity growth, distributed power driver

Doublingits share

Impacting ~$3T retail electricity spend

Customers need reliable, affordable, accessible, sustainable power

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2014 Installed base (IB)/GW

World Power … current technology mix

44

Source: GE P&W estimates

China• No.1 in IB from 2014• Total IB has tripled in last 10 years

United States• Wind, Solar & Gas >80% new equip. last 5 yrs• Weak demand growth … 5 of last 6 yrs � or flat

Europe• Wind & Solar more than double in last 5 yrs• Utility earnings � … oversupply & � demand

Japan• Nuke closures lead to increased LNG imports

MENAT• Gas doubled in last 10 years• Largest Oil Capacity

Coal & gas & hydro nearly 80% of global IB in ‘14 … wind & solar expanding rapidly

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Solar Wind

Nuclear Oil

Renewable ST Hydro

Gas Coal

1,421

1,288

648

1,122

459

367 329 304

839

Source: GE P&W analysis

0

10,000

20,000

30,000

'10 '15 '20 '25

Growth centers are shiftingElectricity consumption (TWh)

Developing economies

2x demand ‘10-’25

60% of global economy

~90% GW outside of N.A.

CAGR (‘13-’25)

Source: GE P&W estimates

~20k

~22k

~26k

~30k

Non-OECD~4%

OECD~1%

5

Non-OECD will account for +60% of global electricity consumption by 2025

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New equipment, 2014-2023World Power … the next 10 yrs

6

23%

23%

20%

13%

9%

6%5%

1%

Wind� 64%

Reciprocating Engines(~10% Gas)

�86%

Renew.ST

Fossil ST� 30%

Hydro� 12%

SC/CCGT � 12%

Nuclear� 74%

Solar� 226%

~3,400 GW

6

Source: GE P&W estimates

• Distributed gen growing …

centralized gen still >60%

• Emerging mkts growth …

~75%+ of orders & ~85% of kWh growth

• GT orders reach parity with coal …

gas installs � as gas availability �

• Renewables doubles …

~20% of orders up from ~10%

Distributed power & renewables growing … central power gen remains core

V% vs. Last 10 yrs.

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The age of gas …

Sources: GE P&W, EIA, Excludes Alaska, Rystad, IHS-CERA, Hart’s, SLB, PE Unconventional

Unconventional Production OutlookBCM/yr.

'10 '15e '20e

NorthAmerica

EuropeAsia-PacificChinaROW

NAM price $4-$6/MMBTU thru ‘24

• Uncv. Gas from ~10% to ~50%+ (’00-’13)

Growing global LNG investment

• ~$200B spend next 4 yrs …↑150%

Increasing global market

• Lower oil price & excess LNG supply driving price down

Natural gas poised to take on a larger role in the energy mix

~380

~575

~800

~20%of global supply

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Renewables going mainstreamSolar

Technology making renewables more economic than ever

Wind

Cumulative (GW)

Source: GWEC, Navigant, REN21, Bloomberg, Lazard, MAKE

8

New biz models & policy ���� adoption

• 4 countries ~70% of ‘14 Solar installs

• ~180 TWh in ’14, <1% of demand

Source: EWEA, AWEA, EIA, GE Marketing, Fraunhofer ISE, Lazard

GE © 2014 – All Rights Reserved

New tech ���� capacity factor, ���� LCOE

• Wind >35% of EU/US installs ‘12-’14

• 5 countries w/~20% wind generation

3 723

100

210

'03 '06 '09 '12 '15e

Cumulative (GW)

Cost

~50%Past 5 Yrs.

Cost

~75%Past 5 Yrs.

8

3974

155

280

405

'03 '06 '09 '12 '15e

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Disruptors gaining momentum

Data &Analytics

Disruptive trends impacting electricity demand growth

“Improving power use through software”

Energy Costs ���� 20%

RooftopSolar

“Biz models gain traction”

25+GW/yr.

EnergyStorage

Cost ���� 40%

On-SitePower

“Specific customer needs”

Efficiency 80%+

~$3T/Yr

EnergyEfficiency

“Less kWhrs”

TWh ���� 10%+

Source: Washington Post, Bloomberg, GE Marketing Analysis

“Grid-scale & behind-the-meter”

9GE © 2014 – All Rights Reserved

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China MENAT Asia Europe LATAM India USA &Canada

Russia / CIS Africa ROW

Wind Solar PV

Oil Recip Engine Nuclear

Hydro & PS Gas Recip Engine

Coal Gas Turbine

2014 - 2023 (GW)

Regional orders profile

10

Source: GE P&W estimates

485450

330270

220 190125 120

China –

#1 for multiple technologies

Middle East - #1 for gas & oil PG

SE Asia & LATAM & Africa –

Fastest growth

Mexico & Japan –

Driven by deregulation

US/Canada –

Clean energy policy & � $ NG

Source: Oxford Economics, IEA, GE P&W Marketing Analysis

80

V �3% �25% �70% �60%�8% �25% �5% �40% �100% � 25%

1,140

MiddleEast

Regional impact varies … country specific strategies required

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11

Country Key dynamics

South Africa… Big supply gap

Ghana/Tanzania/Cameroon… New gas supply ���� uncerntainty in timing

Nigeria… On going privatization, infrastructure challenge

Mozambique… Future exporter of gas

Angola… Opportunity around Oil field

• GT accounts ½ of addition, High growth in solar• SSA generation capacity to grow by ~50%• 9.6GW from SA nuclear … online 2023

8%

47%

13%

3%

5%

6%

4%

6%

8%

Wind↑

GasRecips�

Steam�

Hydro↓

Simple & CC Gas Turbines

�

Nuclear�

Utility Solar�

PG Oil Recip engines

↑DG Solar�

~47GW

Subsaharan Africa region dynamics

GW – 2015-2019. Trend vs. past 5 years

Selected projectsSelected projects

MozambiqueNigeriaNigeriaGhana

Country Project Total MW

SasolRockson TranscorpGhana1000

400MW1400MW520MW390MW

Est COD

2019202020202019

Emergency power in need due to supply gap, extensive work on infrastructure is required,private investment encouraged

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Source: GE P&W estimates

*All estimated CODs are subject to change

Selected projectsSelected projects

12

MENAT region dynamics

8%

67%

2%

3%8%

1%4%4%Wind↑

GasRecips↓

Steam↓

Hydro↓

Simple & CC Gas Turbines

↓

Nuclear↓

Utility Solar�

PG Oil Recip engines

↑

~143GW

DG Solar�

• SC/CCGT … ~1/2 KSA (45%)• Steam ↓ … KSA ↓ 10 GW, Turkey ↓ 5GW; Pak. ↑ 2GW• Renewables ↑ 5 GW…Wind ↑ ~7 GW, Hydro ↓ 5 GW

Country Key dynamics

Egypt, Algeria… Growth with mega deals

KSA… Night time peak demand drive capacity addition

Kuwait, UAE, Egypt… LNG imports, Evaluation with $9-18 gas price

Turkey… Lower LCOE focus

Iraq, Pakistan…Future Growth potential

Oman Duqm IWPP 400MW 2019Kuwait Az Zour Noth II IWPP 1400MW 2019Bahrain Aluminium Bahrain 1300MW 2019Saudi Arabia South Madina 3600MW 2019Saudi Arabia North Qassim 1800MW 2019

Country Project Total MW Est COD

GW – 2015-2019. Trend vs. past 5 years

No.1 region for gas PG growth … increasing sensitivity to gas price & efficiency

© 2015 General Electric Company. Proprietary and confidential information. This document may not be reproduced or distributed without permission. All Rights Reserved.

Source: GE P&W estimates

*All estimated CODs are subject to change

LATAM region dynamics

13

Country Key dynamics

Brazil… Emergency power with Hydro crisis. 1~2GW Auction/yr

Mexico… Energy reform on track. CFE under pressure

Argentina… Importance of Financing

Chile/Colombia/Peru… Stability, high growth and gas-to-power projects

• Gas increase from Maxico & Argentina• Steam reduction ~3GW • Renewable decrease mainly from Brazil Hydro

3%

26%

1%5%

7%

11%5%

0.2%

42%

Wind↑

GasRecips↓

Steam↓

Hydro↓

Simple & CC Gas Turbines

↑

Nuclear↑

Utility Solar�

PG Oil Recip engines

↑

~133 GW

DG Solar�

Selected projectsSelected projects

BrazilMexicoChileChilePanama

Country Project Total MW Est COD

EDF SabinaFermaca CCSantafeZephryaAES

500MW550MW600MW600MW350MW

20192019201720172019

Market slow due to commodity & oil price drop, Demand driven from policy change or weather issue, Weak gas infrastructure drives Oil or “Gas to Power” opportunity

GW – 2015-2019. Trend vs. past 5 years

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Source: GE P&W estimates *All estimated CODs are subject to change

14

ASEAN region dynamics

42%

33%

4%

3%

11%

2% 5%

Wind↑

Recips engines

�

Steam�

Hydro�

Simple & CC Gas Turbines

�

Nuclear�

Solar�

Country Key dynamics

Indonesia… New policy with 35GW installation target in ‘15-’19. Removing barriers for infrastructure projects.

Thailand… View of excess power capacity, working to delay future projects

Malaysia … Oil price impact & different gas supply dynamics within the country

Philippines / Vietnam … Projects dependent on new gas supply

Myanmar … Strong demand, but gas supply challenge

• Coal … Indonesia ↑ / Vietnam ↑• Gas… Malaysia & Thailand continues ↑ Indonesia,

Philippines, Vietnam• Pick-up of wind industry ~2 GW (Thai/Philip/Viet)

vs.~0.5 GW in the last 5yrs

Demand driven by electrification effort & economic growth. Gas will continue to play important role … gas availability is increasingly becoming a challenge

Selected projectsSelected projectsCountry Project Total MW COD

MalaysiaIndonesiaVietnamThailand

Track 4B (Tuah)Jawa 1 (Muara Tawar)Exxon BluewhaleGulf IPP

2000-24001600~2000~5000

~80 GW

GW – 2015-2019. Trend vs. past 5 years

2019201920232021

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Source: GE P&W estimates*All estimated CODs are subject to change

15Global EPC Summit 2013

Malaysia

Thailand

Indonesia

Vietnam

Philippines

Power Generation Dynamics Grid Size Pipeline **2

• New gov. drive for 35GW PG addition in ’15-’19

• ↓ govt. subsidies ... driving efficiency & lifecycle play

• Drive for distributed power & diesel replacement

• Power consumption � rapidly

• New gas projects with new O&G field developments

• EVN gas projects hurdles … big pipeline

PG Add. *1

• ↓ govt. subsidies … govt. reducing the burden

• Replacement of aging CCGT fleet (~5GW over 5 years)

• Lowest RM of 23% but increasing to 30% by ‘25

230 – 500/kV

150 - 500/kV

• New PDP with revised capacity addition ↓• � coal & renewables, but limited SPP (cogen) drive

• Replacement of aging CCGTs (~7GW over 7 years)

9 GW Gas

7 GW Coal

7 GW Gas

5 GW Coal

14 GW Gas

20 GW Coal

4 GW Gas

5 GW Coal

5 GW Gas

20 GW Coal

Big GT: ~8.5 GW

Small GT: ~0.4 GW

• Continuous investment in power sector (deregulated)

• Infrastructure … grid constraint & LNG supply dev. (by ’17)

• Distributed power to power remote islands

138 - 500/kV

138 - 500/kV

230 – 500/kV

Big GT: ~6.0 GW

Mid GT: ~0.5 GW

Small GT: ~ 1.1GW

Big GT: ~5.5 GW

Mid GT: ~4.8 GW

Small GT: ~ 4.1GW

Big GT: ~3.1 GW

Small GT: ~0.2 GW

Big GT: ~2.1GW

Mid GT: ~3.1 GW

Myanmar

• Electrification rate of ~ 25% … continued power needs

• PPAs being singed for new projects

• Gas availability limiting near term projects

~1 GW Gas

<2 GW GW Coal66-500/kV Small GT: ~0.8GW

Notes: *1 Over the next decade. *2 Including prospective projects

Rising demand for gas projects in ASEAN

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Best in class technologies

1

2

3

1. Improved output efficiency > 62%

2. Optimize life cycle & lowest LCOE gas tech.

1. Improved 9F series

2. Life cycle cost optimization

8.5 GW

~25 GW

Project pipelinesnapshot (2015+)

1. Daily start/stop flexibility

2. Efficient 6FA CCGT for small grids

4.8 GW

~8 GW

~7 GW

4

5.5 GW

6.0 GW

3.1 GW

0.3 GW

0.8 GW

51. Efficient ADGT CHP solution

2. Gas engine + gasifier solutions

19 GW+

11GW 5.8 GW

Multiple of 1~100MW projects across the

region (Some with non-NG fuel)

• SPP (TH), biomass and low-rank-coal gasification

• Virtual pipeline for greater gas access

• Align to developer proforma and performance benchmark

Large Size GT (CC > 500MW)

Mid Size GT (CC 300MW – 500MW)

• Driving current platforms into sweet spots

Small Size GT (CC < 300MW)

• Cogen applications and Flexible CCGT

Large STG (>600MW unit)

• Enable developer selection of technology

• Package with EPC/Boiler manufacturers

Distributed Power (<100MW)

1. Selective in SC and USC … based on eff. requirement

4.1 GW

GE Key campaigns and focus

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17

Country Project Name Timeline

Brunei BPMC Cogen (500MW) 3Q'15

Brunei Bukit Panggal Cogen (130MW) 3Q'16

Indonesia Muara Karang Block 3 (360MW) 3Q'15

Indonesia Jawa 2 (~650MW) 3Q'15

Indonesia Millenium (~160MW) 4Q'15

Indonesia Senipah (280MW) 4Q'15

Indonesia Jawa 1 IPP (940MW) 4Q'15

Indonesia Riau (140MW) 4Q'15

Indonesia Jawa Bali Peakers 3 (~400MW) 4Q'15

Indonesia WTE Bantargebang (~90MW) 1Q'16

Indonesia Sulsel Peaker (530MW) 1Q'16

Indonesia Sumbagut Peaker (~160MW) 1Q'16

Indonesia Batanghari (~240MW) 2Q'16

Indonesia Intiland (~160MW) 2Q'16

Indonesia ChemOne Coal-To-Methanol (260MW) 3Q'16

*All projects timeline are subject to change

Country Project Name Timeline

Myanmar Thaketa (~120MW) 3Q'15

Philippines First Gen Sta Maria (~300MW) 3Q'15

Philippines Trans Asia (400MW) 4Q'15

Philippines Minergy (120MW) 1Q'16

Philippines Meralco (1500MW) 3Q'16

Thailand EGAT – Bang Pa Kong (1400MW) 3Q'15

Thailand EGAT – South Bangkok (1400MW) 3Q'15

Thailand Gulf Electric IPP (5000MW) 3Q'16

Vietnam Omon 4 (750MW) 2Q'16

Vietnam Omon 3 (750MW) 3Q'16

Vietnam Son My LNG (~400MW) 2Q'19

Vietnam EXXON (1500MW) 4Q'19*All projects timeline are subject to change

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