corporate information Corporate Headquarters General Electric Company 3135 Easton Turnpike Fairfield, CT 06828 (203) 373-2211 Annual Meeting GE’s 2007 Annual Meeting of Shareowners will be held on Wednesday, April 25, 2007 at the Carolina First Center (formerly Palmetto Expo Center) in Greenville, South Carolina. Shareowner Services To transfer securities, write to GE Share Owner Services, c/o The Bank of New York, P.O. Box 11002, New York, NY 10286-1002. For shareowner inquiries, including enrollment information and a prospectus for the Direct Purchase and Reinvestment Plan, “GE Stock Direct,” write to GE Share Owner Services, c/o The Bank of New York, P.O. Box 11402, New York, NY 10286-1402 or call (800) 786-2543 (800-STOCK-GE) or (212) 815-3700 or send an e-mail to firstname.lastname@example.org. For Internet access to general shareowner information and certain forms, including transfer instructions or stock power, visit the Web site at www.stockbny.com/ge. Stock Exchange Information In the United States, GE common stock is listed on the New York Stock Exchange (its principal market) and the Boston Stock Exchange. It also is listed on certain non-U.S. exchanges, including the London Stock Exchange and Euronext Paris. Trading and Dividend Information Common Stock Market Price Dividends Declared (In dollars) High Low 2006 Fourth quarter $38.49 $34.62 $.28 Third quarter 35.65 32.06 .25 Second quarter 35.24 32.78 .25 First quarter 35.63 32.21 .25 2005 Fourth quarter $ 36.34 $32.67 $.25 Third quarter 35.78 32.85 .22 Second quarter 37.34 34.15 .22 First quarter 36.89 34.95 .22 As of December 31, 2006, there were about 626,000 shareowner accounts of record. Form 10-K and Other Reports Certifications The financial information in this report, in the opinion of manage- ment, substantially conforms with information required in the “Form 10-K Report” to be filed with the U.S. Securities and Exchange Commission (SEC) in February 2007. However, the Form 10-K Report also contains additional information, including the Five Year Financial Performance Graph previously included in our annual proxy statement, and it can be viewed at www.ge.com/secreports. Copies also are available, without charge, from GE Corporate Investor Communications, 3135 Easton Turnpike, Fairfield, CT 06828. General Electric Capital Services, Inc. and General Electric Capital Corporation file Form 10-K Reports with the SEC, and these can also be viewed at www.ge.com/secreports. GE has included as exhibits to its Annual Report on Form 10-K for fiscal year 2006 filed with the SEC certifications of GE’s Chief Executive Officer and Chief Financial Offi cer certifying the quality of the company’s public disclosure. GE’s Chief Executive Officer has also submitted to the New York Stock Exchange (NYSE) a certification certifying that he is not aware of any violations by GE of the NYSE corporate governance listing standards. Information on the GE Foundation, GE’s philanthropic organi- zation, can be viewed at www.gefoundation.com. Internet Address Information Visit us online at www.ge.com for more information about GE and its products and services. The 2006 GE Annual Report is available online at www.ge.com/annual06. For detailed news and information regarding our strategy and our businesses, please visit our Press Room online at www.ge.com/news and our Investor Information site at www.ge.com/investor. Product Information For information about GE’s consumer products and services, visit us at www.geconsumerandindustrial.com. Corporate Ombudsperson To report concerns related to compliance with the law, GE policies or government contracting requirements, write to GE Corporate Ombudsperson, P.O. Box 911, Fairfield, CT 06825 or call (800) 227-5003 or (203) 373-2603 or send an e-mail to email@example.com. Contact the GE Board of Directors For reporting complaints about GE’s fi nancial reporting, internal controls and procedures, auditing matters or other concerns to the Board of Directors or the Audit Committee, write to GE Board of Directors, General Electric Company (W2E), 3135 Easton Turnpike, Fairfield, CT 06828 or call (800) 417-0575 or (203) 373-2652 or send an e-mail to firstname.lastname@example.org. ©2007 General Electric Company Printed in U.S.A. Note: Unless otherwise indicated by the context, the term “GE,” “General Electric” and “Company” are used on the basis of consolidation described on page 74. GE and are trademarks and service marks of General Electric Company NBC and are trademarks and service marks of NBC Universal, Inc. Ecomagination, Evolution, GE90, GE Interest Plus, GE Money, GEnx and LMS100 are trademarks and service marks of General Electric Company. Patent applications filed in 2006 by GE include U.S. original and other applications. Caution Concerning Forward-Looking Statements: This document contains “forward-looking statements”— that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncer- tain. For us, particular uncertainties that could adversely or positively affect our future results include: the behavior of financial markets, including fl uctuations in interest and exchange rates and commodity and equity prices the commercial and consumer credit environment the impact of regulation and regulatory and legal actions strategic actions, including acquisitions and dispositions future integration of acquired businesses future financial performance of major indus- tries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. 116 ge 2006 annual report
GE CUMULATIVE CASH FLOWS (In $ billions) A. Cash flows from operating activities B. Dividends paid C. Shares repurchased ($) 2005 60 2004 38 2003 23 2002 10 2006 84 A B C 2005 1.76 2004 1.59 2003 1.40 2002 1.46 2006 1.99 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES (In dollars) 2005 148 2004 134 2003 113 2002 112 2006 163 CONSOLIDATED REVENUES (In $ billions) Throughout the economic cycles, GE’s long-term financial goals are: organic revenue growth of 2–3X GDP greater than 10% annual earnings growth operating cash flow exceeding earnings growth and a return on average total capital of 20%. here is how ge performed in 2006: • Continuing revenues increased 10% to $163.4 billion. Organic revenue growth was 9%. • Earnings from continuing operations grew 11% to $20.7 billion. Earnings in four of six businesses grew by more than 10%. Industrial operating profi t expanded 40 basis points to 15.2%. • Cash flow from operating activities (CFOA) was $24.6 billion, up 14%. Industrial cash flow grew 7%. Return on average total capital (ROTC) was 18.4%, up 180 basis points from 2005. • The Board of Directors increased the dividend 12% for GE’s 31st consecutive annual increase. In addition, GE repurchased $8.1 billion of stock as part of its $25 billion program. At year end, GE’s dividend yield was 3%, a 50% premium to that of the S&P 500. In all, GE returned more than $18 billion to GE shareowners in 2006. • Total return for GE shareowners (stock price appreciation assuming reinvested dividends) was 9% versus the S&P 500’s total return of 16%. Over the last three years, GE’s total shareowner return was 30%, equivalent to that of the S&P 500. At year end, GE traded at a forward price/earnings ratio (PE) of 16.8X, a 10% premium to the S&P 500. • GE continued to earn the respect of the business world. GE was named FORTUNE magazine’s “Most Admired Company” for the second straight year, and GE ranked second in Barron’s annual survey of the world’s most respected companies. • GE has substantial fi nancial strength. The Company remained one of only six “Triple-A”-rated U.S. industrial companies. Our global pension plans have more than $60 billion in assets, a surplus of nearly $9 billion. The Company expects to meet its obligations to pensioners with no significant increase in funding for the foreseeable future. • GE invested $15 billion in its intellectual foundation including products, services, marketing and programming. The Company filed 2,650 patents, representing an increase of 19% versus 2001. The GE brand is one of the most valuable in the world. Performance Summary contents 3 Letter to Investors 12 Winning in the Future 20 Leadership Businesses 24 Execution & Financial Discipline 26 Growth as a Process 34 Our People 40 Governance 44 Citizenship 45 Financial Section 114 Corporate Management 116 Corporate Information Design: VSA Partners, Inc. Principal Photography: Douglas Menuez, John Midgley, Jason Schmidt Printing: Cenveo Anderson L ithograph Visit our interactive online annual report at www.ge.com/annual06 Thanks to the customers, partners and GE employees who appear in this annual report for contributing their time and support. This document was printed on paper that contains from 10% to 100% post-consumer material. The majority of the power utilized was renewable energy, produced with GE’s wind and biogas technologies, and powered by GE steam engines and turbine engines. The paper was supplied by participants of the Sustainable Initiative Programs. GE employed a printer that produces all of its own electricity and is a verifi ed totally enclosed facility that produces virtually no volatile organic compound emissions.
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