management’s discussion and analysis Selected Financial Data (Dollars in millions per-share amounts in dollars) 2006 2005 2004 2003 2002 GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES Revenues $163,391 $147,956 $134,291 $113,421 $111,967 Earnings from continuing operations before accounting changes 20,666 18,661 16,601 14,091 14,629 Earnings (loss) from discontinued operations, net of taxes 163 (1,950) 559 2,057 (616) Earnings before accounting changes 20,829 16,711 17,160 16,148 14,013 Net earnings 20,829 16,711 17,160 15,561 12,998 Dividends declared 10,675 9,647 8,594 7,759 7,266 Return on average shareowners’ equity(a) 19.5% 17.8% 17.9% 20.0% 25.2% Per share Earnings from continuing operations before accounting changes — diluted $ 1.99 $ 1.76 $ 1.59 $ 1.40 $ 1.46 Earnings (loss) from discontinued operations — diluted 0.02 (0.18) 0.05 0.20 (0.06) Earnings before accounting changes — diluted 2.00 1.57 1.64 1.60 1.40 Net earnings — diluted 2.00 1.57 1.64 1.54 1.30 Earnings from continuing operations before accounting changes — basic 1.99 1.77 1.60 1.41 1.47 Earnings (loss) from discontinued operations — basic 0.02 (0.18) 0.05 0.21 (0.06) Earnings before accounting changes — basic 2.01 1.58 1.65 1.61 1.41 Net earnings — basic 2.01 1.58 1.65 1.55 1.31 Dividends declared 1.03 0.91 0.82 0.77 0.73 Stock price range 38.49–32.06 37.34–32.67 37.75–28.88 32.42–21.30 41.84–21.40 Year-end closing stock price 37.21 35.05 36.50 30.98 24.35 Total assets of continuing operations 697,239 612,255 604,338 503,616 441,550 Total assets 697,239 673,321 750,617 647,834 575,018 Long-term borrowings 260,804 212,281 207,871 170,309 138,570 Shares outstanding — average (in thousands) 10,359,320 10,569,805 10,399,629 10,018,587 9,947,113 Shareowner accounts — average 624,000 634,000 658,000 670,000 655,000 Employees at year end United States 155,000 161,000 165,000 155,000 161,000 Other countries 164,000 155,000 142,000 150,000 154,000 Total employees 319,000 316,000(b) 307,000 305,000 315,000 GE DATA Short-term borrowings $ 2,212 $ 1,127 $ 3,409 $ 2,555 $ 8,786 Long-term borrowings 9,085 9,081 7,625 8,388 970 Minority interest 5,623 5,806 7,701 1,079 1,028 Shareowners’ equity 112,314 109,351 110,908 79,662 63,979 Total capital invested $129,234 $125,365 $129,643 $ 91,684 $ 74,763 Return on average total capital invested(a) 18.4% 16.6% 16.2% 18.1% 24.0% Borrowings as a percentage of total capital invested(a) 8.7% 8.1% 9.0% 11.9% 13.0% Working capital(a) $ 7,566 $ 8,399 $ 8,328 $ 5,282 $ 3,821 GECS DATA Revenues $ 63,602 $ 57,551 $ 52,704 $ 43,513 $ 38,456 Earnings from continuing operations before accounting changes 10,495 9,527 8,169 6,256 4,122 Earnings (loss) from discontinued operations, net of taxes 163 (1,950) 559 2,057 (616) Earnings before accounting changes 10,658 7,577 8,728 8,313 3,506 Net earnings 10,658 7,577 8,728 7,974 2,491 Shareowner’s equity 54,097 50,812 54,379 45,790 37,202 Total borrowings 426,279 362,069 355,501 316,593 267,014 Ratio of debt to equity at GE Capital 7.52:1 7.09:1 6.45:1 6.62:1 6.48:1 Total assets $564,668 $540,584 $618,614 $554,877 $489,602 Transactions between GE and GECS have been eliminated from the consolidated information. (a) Indicates terms are defined in the Glossary. (b) Excludes employees of Genworth in 2005 as a result of the third quarter deconsolidation. ge 2006 annual report 67

audited financial statements Statement of Earnings General Electric Company and consolidated affi liates For the years ended December 31 (In millions per-share amounts in dollars) 2006 2005 2004 REVENUES Sales of goods $ 64,297 $ 59,837 $ 55,005 Sales of services 36,403 32,752 29,700 Other income (note 3) 2,537 1,683 1,064 GECS earnings from continuing operations — — — GECS revenues from services (note 4) 59,957 53,144 48,004 GECS commercial paper interest rate swap adjustment 197 540 518 Total revenues 163,391 147,956 134,291 COSTS AND EXPENSES (note 5) Cost of goods sold 50,588 46,169 42,645 Cost of services sold 23,522 20,645 19,114 Interest and other financial charges 19,286 15,102 11,616 Investment contracts, insurance losses and insurance annuity benefits 3,214 3,374 3,086 Provision for losses on financing receivables (note 14) 3,839 3,841 3,888 Other costs and expenses 37,414 35,143 32,917 Minority interest in net earnings of consolidated affiliates 908 986 728 Total costs and expenses 138,771 125,260 113,994 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 24,620 22,696 20,297 Provision for income taxes (note 8) (3,954) (4,035) (3,696) EARNINGS FROM CONTINUING OPERATIONS 20,666 18,661 16,601 Earnings (loss) from discontinued operations, net of taxes (note 2) 163 (1,950) 559 NET EARNINGS $ 20,829 $ 16,711 $ 17,160 Per-share amounts (note 9) Per-share amounts — earnings from continuing operations Diluted earnings per share $ 1.99 $ 1.76 $ 1.59 Basic earnings per share 1.99 1.77 1.60 Per-share amounts — net earnings Diluted earnings per share 2.00 1.57 1.64 Basic earnings per share 2.01 1.58 1.65 DIVIDENDS DECLARED PER SHARE $ 1.03 $ 0.91 $ 0.82 Consolidated Statement of Changes in Shareowners’ Equity (In millions) 2006 2005 2004 CHANGES IN SHAREOWNERS’ EQUITY (note 23) Balance at January 1 $109,351 $110,908 $ 79,662 Dividends and other transactions with shareowners (17,983) (13,249) 10,009 Changes other than transactions with shareowners Increase attributable to net earnings 20,829 16,711 17,160 Investment securities — net (223) (437) 412 Currency translation adjustments — net 3,649 (4,318) 3,936 Cash flow hedges — net 223 (47) 150 Benefit plans — net (3,532) (217) (421) Total changes other than transactions with shareowners 20,946 11,692 21,237 Balance at December 31 $112,314 $109,351 $110,908 The notes to consolidated financial statements are an integral part of these statements. 68 ge 2006 annual report