management’s discussion and analysis Summary of Operating Segments (In millions) 2006 General Electric Company and consolidated affi liates 2005 2004 2003 2002 REVENUES Infrastructure Commercial Finance GE Money Healthcare NBC Universal Industrial $ 47,429 23,792 21,759 16,562 16,188 33,494 $ 41,803 20,646 19,416 15,153 14,689 32,631 $ 37,373 19,524 15,734 13,456 12,886 30,722 $ 36,569 16,927 12,845 10,198 6,871 24,988 $ 40,119 15,688 10,266 8,955 7,149 26,154 Total segment revenues Corporate items and eliminations 159,224 4,167 144,338 3,618 129,695 4,596 108,398 5,023 108,331 3,636 CONSOLIDATED REVENUES $163,391 $147,956 $134,291 $113,421 $111,967 SEGMENT PROFIT Infrastructure Commercial Finance GE Money Healthcare NBC Universal Industrial $ 9,040 5,028 3,507 3,143 2,919 2,694 $ 7,769 4,290 3,050 2,665 3,092 2,559 $ 6,797 3,570 2,520 2,286 2,558 1,833 $ 7,362 2,907 2,161 1,701 1,998 1,385 $ 9,178 2,170 1,799 1,546 1,658 1,837 Total segment profit Corporate items and eliminations GE interest and other financial charges GE provision for income taxes 26,331 (1,251) (1,834) (2,580) 23,425 (582) (1,432) (2,750) 19,564 (11) (979) (1,973) 17,514 375 (941) (2,857) 18,188 847 (569) (3,837) Earnings from continuing operations before accounting changes Earnings (loss) from discontinued operations, net of taxes 20,666 163 18,661 (1,950) 16,601 559 14,091 2,057 14,629 (616) Earnings before accounting changes Cumulative effect of accounting changes 20,829 — 16,711 — 17,160 — 16,148 (587) 14,013 (1,015) CONSOLIDATED NET EARNINGS $ 20,829 $ 16,711 $ 17,160 $ 15,561 $ 12,998 The notes to consolidated financial statements are an integral part of this summary. INFRASTRUCTURE (In millions) 2006 2005 2004 REVENUES $47,429 $41,803 $37,373 SEGMENT PROFIT $ 9,040 $ 7,769 $ 6,797 (In millions) 2006 2005 2004 REVENUES Aviation $13,152 $11,904 $11,094 Aviation Financial Services 4,177 3,504 3,159 Energy 19,133 16,525 14,586 Energy Financial Services 1,664 1,349 972 Oil & Gas 4,340 3,598 3,135 Transportation 4,169 3,577 3,007 SEGMENT PROFIT Aviation $ 2,909 $ 2,573 $ 2,238 Aviation Financial Services 1,108 764 520 Energy 3,000 2,665 2,543 Energy Financial Services 695 646 376 Oil & Gas 548 411 331 Transportation 781 524 516 Infrastructure revenues rose 13%, or $5.6 billion, in 2006 on higher volume ($4.8 billion), higher prices ($0.3 billion) and effects of late 2006 weakening of the U.S. dollar ($0.1 billion) at the industrial businesses in the segment. The increase in volume reflected increased sales of power generation equipment at Energy, commercial and military services and commercial engines at Aviation, equipment at Oil & Gas, and locomotives at Transportation. The increase in price was primarily at Energy. Revenues also increased as a result of organic revenue growth at Aviation Financial Services ($0.7 billion) and Energy Financial Services ($0.3 billion). Intra-segment revenues, which increased $0.5 billion, were eliminated from total Infrastructure revenues. Segment profit rose 16% to $9.0 billion, compared with $7.8 billion in 2005, as higher volume ($0.7 billion), higher prices ($0.3 billion) and productivity ($0.3 billion) more than offset the effects of higher material and other costs ($0.4 billion) at the industrial businesses in the segment. The increase in volume primarily related to Energy and Aviation. Segment profit from the financial services businesses increased as a result of core growth at Aviation Financial Services ($0.3 billion), including growth in lower-taxed earnings from global operations that were more than offset by lower one-time benefits from our aircraft leasing business reorganization, and core growth at Energy Financial Services. ge 2006 annual report 53

management’s discussion and analysis Infrastructure revenues rose 12%, or $4.4 billion, in 2005 as higher volume ($4.3 billion) was partially offset by lower prices ($0.6 billion) at the industrial businesses in the segment. The increase in volume was primarily at Energy, Aviation and Transportation. The decrease in prices was primarily at Energy and was partially offset by increased prices at Transportation and Aviation. Revenues also increased as a result of organic revenue growth at Energy Financial Services ($0.4 billion) and Aviation Financial Services ($0.3 billion). Segment profit rose 14% to $7.8 billion in 2005, compared with $6.8 billion in 2004, as higher volume ($1.0 billion) and productiv- ity ($0.2 billion including customer settlements and contract terminations) more than offset lower prices ($0.6 billion) and the effects of higher material and other costs ($0.3 billion) at the industrial businesses in the segment. The increase in volume primarily related to Energy, Aviation and Transportation. Segment profit also increased as a result of increased net earnings at the financial services businesses. This increase refl ected core growth at Energy Financial Services ($0.3 billion) and core growth at Aviation Financial Services ($0.2 billion), including growth in lower- taxed earnings from global operations related to a reorganization of our aircraft leasing operations. Infrastructure orders were $51.1 billion in 2006, up from $38.4 billion in 2005. The $39.2 billion total backlog at year-end 2006 comprised unfilled product orders of $27.0 billion (of which 59% was scheduled for delivery in 2007) and product services orders of $12.2 billion scheduled for 2007 delivery. Comparable December 31, 2005, total backlog was $29.2 billion, of which $18.8 billion was for unfilled product orders and $10.4 billion for product services orders. COMMERCIAL FINANCE (In millions) 2006 2005 2004 REVENUES SEGMENT PROFIT $23,792 $ 5,028 $20,646 $ 4,290 $19,524 $ 3,570 December 31 (In millions) TOTAL ASSETS 2006 $233,536 2005 $190,546 (In millions) REVENUES Capital Solutions Real Estate SEGMENT PROFIT Capital Solutions Real Estate 2006 $12,356 5,020 $ 1,727 1,841 2005 $11,476 3,492 $ 1,515 1,282 2004 $11,503 3,084 $ 1,325 1,124 December 31 (In millions) ASSETS Capital Solutions Real Estate 2006 $94,523 53,786 2005 $87,306 35,323 Commercial Finance revenues and net earnings increased 15% and 17% in 2006, respectively, compared with 2005. Revenues during 2006 and 2005 included $1.0 billion and $0.1 billion from acquisitions, respectively, and in 2006 were reduced by $0.1 billion as a result of dispositions. Revenues for 2006 also increased as a result of organic revenue growth ($2.5 billion). The increase in net earnings resulted primarily from core growth ($0.6 billion), including growth in lower-taxed earnings from global operations, and acquisitions ($0.1 billion). Real Estate assets increased $18.5 billion (52%), of which $12.4 billion was real estate investments, up 76%. Real Estate net earnings increased 44% compared with 2005, primarily as a result of a $0.6 billion increase in net earnings from real estate investments. Commercial Finance revenues and net earnings increased 6% and 20% in 2005, respectively, compared with 2004. Revenues during 2005 and 2004 included $1.0 billion and $0.3 billion from acquisitions, respectively, and in 2005 were reduced by $0.7 billion as a result of dispositions. Revenues during 2005 also increased $1.1 billion as a result of organic revenue growth ($0.8 billion) and the weaker U.S. dollar ($0.3 billion). The increase in net earnings resulted primarily from core growth ($0.6 billion), including growth in lower-taxed earnings from global operations, acquisitions ($0.2 billion) and the weaker U.S. dollar ($0.1 billion), partially offset by lower securitizations ($0.1 billion). GE MONEY (In millions) 2006 2005 2004 REVENUES SEGMENT PROFIT $21,759 $ 3,507 $19,416 $ 3,050 $15,734 $ 2,520 December 31 (In millions) TOTAL ASSETS 2006 $190,403 2005 $158,829 GE Money revenues and net earnings increased 12% and 15% in 2006, respectively, compared with 2005. Revenues for 2006 included $0.9 billion from acquisitions. Revenues in 2006 also increased as a result of organic revenue growth ($1.6 billion), partially offset by the overall strengthening U.S. dollar ($0.2 billion). The increase in net earnings resulted primarily from core growth ($0.4 billion), including growth in lower-taxed earnings from global operations, acquisitions ($0.2 billion) and higher securitiza- tions ($0.1 billion), partially offset by reduced earnings from our Japanese business ($0.2 billion), primarily related to higher customer claims for partial interest refunds under Japanese law. In 2006 and 2005, charges related to these claims totaled $0.4 billion and $0.2 billion after tax, respectively. On December 13, 2006, a new lending law was passed in Japan. This law will significantly affect the operating environment for the entire consumer lending industry in Japan. This law will be phased in over three years and will reduce the maximum allowable lending rate and limit individual consumer borrowing by 2010. Our future revenues and provisions for losses in Japan continue to be affected by both this legislation and the volume and amounts of claims. We are taking appropriate strategic actions to address these matters. GE Money revenues and net earnings increased 23% and 21% in 2005, respectively, compared with 2004. Revenues for 2005 included $1.9 billion from acquisitions. Revenues during 2005 also increased $1.8 billion as a result of organic revenue 54 ge 2006 annual report