Stock Price Drivers

Stock Price Drivers Energy prices have a direct impact on five GE segments: GE Power & Water, Oil & Gas and Oil & Gas Energy Management drilling and revenues maintenance activity Energy Prices Demand for fuel-efficient GE Aviation and engines GE Transportation revenues Global Primary Energy Consumption by Year: 600 +89% 480 360 240 120 1980 1990 2000 2010 Global energy consumption has increased 89% since1980. The Airline Industry: GE Aviation contributes 21% of GE Industrial's revenues. The airline industry has witnessed strong growth over the years. Its 5yr revenue CAGR is Freight Ton Miles (FTM) and Revenue Passenger Miles (RPM) are two metrics used to gauge the performance of the aviation industry. 4%. FTM is a measure of total air freight traffic. It is the product of the total freight on a flight and the total distance travelled by it. RPM is a measure of total air passenger traffic. It is the product of total paying passengers on a flight and the total distance traveled by it. Total Air Freight and Passenger Vol- Worldwide Growth in Air Travel and Business Confidence umes 400 Source: IATA (Seasonally Adjusted) 17 Source: IATA 470 15 450 10 430 410 390 370 Business Confidence -5 Revenue Passenger Miles - Freight Tons Miles 350 -10 Growth in RPMS 330 11 -15 2007 2008 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YoY FTM Growth in July 2013: Global FTM Growth 0.5% North America 0.9% Middle East: 14.4% Latin America: Europe: 3.9% 1.4% Africa: -0.8% Asia Pacific: -3.1 YOY RPM Growth in September 2013: Global RPM Growth 5.5% North America: 1.7% Middle East: 9.5% Europe: Latin America: 3.7% 6.5% Africa: Asia Pacific: 5.7% 9.7% International Passenger Market Source: IATA 330 310 Global International 290 Air Travel 270 15.1% 250 230 YoY in July 2013 210 - Actual Seasonally adjusted ž 190 170 2007 2008 2009 2010 2011 2012 2013 Domestic Passenger Market Source: IATA 190 Global Domestic 180 Air Travel 170 +4.8% 160 150 YoY in July 2013 140 130 - Actual Seasonally adjusted 120 110 2007 2008 2009 2010 2011 2012 2013 US Consumer Credit: GE Capital contributes 29% of GE's total revenues. Consumer credit grew by $13.74bn in Sept 2013, In Sept 2013, US consumer credit grew versus estimates of 5.4% YoY, missing analysts' estimates of 5.5%. $12bn. Growth in Emerging Markets: GE Industrial contributes 71% of GE's total revenues. Strong growth in emerging markets has helped all GE segments grow: China's GDP grew 7.5% YoY during 2QFY13. GE Industrial's revenues from China increased by 4% over the same period. Medical Technology: GE Healthcare contributes 18% of GE Industrial's revenues. Demand for medical technology remains strong, growing at 12% YoY. Governments in emerging markets are trying to provide better healthcare facilities by investing in their respective healthcare sectors. Emerging markets account for 15% of the industry's revenues. SOURCES: BIDNESS Company Data, SEC filings, Bloomberg Professional Services etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc. Monthly RPM (in billions) (Quadrillion British Thermal Units) Monthly RPM (in billions) Monthly FTM Index of business confidence % change over year