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

growth ($1.5 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, and acquisitions ($0.1 billion), partially offset by increased costs to launch new products and promote brand awareness ($0.2 billion). HEALTHCARE revenues rose 9% to $16.6 billion in 2006 as higher volume ($1.8 billion) more than offset the effect of lower prices ($0.4 billion). The rise in volume related to increases in health- care services, including the effects of the 2006 acquisition of IDX Systems Corporation and stronger equipment sales. Segment profit of $3.1 billion was 18% higher than in 2005 as productivity ($0.6 billion) and the effects of higher volume ($0.3 billion) more than offset the effects of lower prices ($0.4 billion) and higher material and other costs ($0.1 billion). Healthcare revenues increased 13% to $15.2 billion in 2005 as higher volume ($2.1 billion), including $0.8 billion from the Amersham acquisition in the second quarter of 2004, and the weaker U.S. dollar ($0.1 billion) more than offset lower prices ($0.4 billion). Segment profit of $2.7 billion was 17% higher than in 2004 as productivity ($0.5 billion) and higher volume ($0.4 billion) more than offset lower prices ($0.4 billion) and higher labor and other costs ($0.1 billion). Orders received by Healthcare in 2006 were $16.7 billion, compared with $15.6 billion in 2005. The $5.9 billion total backlog at year-end 2006 comprised unfilled product orders of $3.9 billion (of which 84% was scheduled for delivery in 2007) and product services orders of $2.0 billion scheduled for 2007 delivery. Comparable December 31, 2005, total backlog was $5.4 billion, of which $3.5 billion was for unfilled product orders and $1.9 billion for product services orders. See Corporate Items and Eliminations for a discussion of items not allocated to this segment. NBC UNIVERSAL revenues rose 10%, or $1.5 billion in 2006, primarily from the 2006 Olympic Games broadcasts ($0.7 billion), improvements in the entertainment cable business ($0.6 billion), improvements in the film business ($0.2 billion) and the effects of exiting a film distribution agreement ($0.2 billion), partially offset by the effects of lower ratings on network and station advertising sales ($0.1 billion) and the net effects of certain strategic actions in both years ($0.1 billion). Segment profit declined 6%, or $0.2 billion, in 2006 as lower earnings from network and station operations ($0.4 billion), the 2006 Olympic Games broadcasts ($0.1 billion), and the net effects of certain strategic actions in both years ($0.1 billion) were partially offset by higher earnings from the cable business ($0.2 billion) and the effects of exiting a film distribution agreement ($0.1 billion). Revenues rose 14%, or $1.8 billion, to $14.7 billion in 2005, reflecting a number of factors, the largest of which was the full- year contribution from the May 2004 combination of NBC with VUE, which resulted in higher film revenues ($1.6 billion), growth of our entertainment cable business ($0.6 billion), and higher revenues from television production operations ($0.3 billion) and theme parks ($0.1 billion). Also contributing to the increase was $0.5 billion from the effects of certain strategic actions. management’s discussion and analysis Partial offsets arose from the lack of a counterpart to the 2004 Olympic Games broadcasts ($0.9 billion) and the effects of lower ratings on network and station advertising sales ($0.4 billion). Segment profit rose 21%, or $0.5 billion, in 2005 as the full-year ownership of VUE contributed $0.6 billion, including improve- ments in the film ($0.3 billion), entertainment cable ($0.2 billion) and television production ($0.1 billion) businesses. The effects of certain strategic actions ($0.5 billion) were more than offset by lower earnings from network and station operations ($0.6 billion). See Corporate Items and Eliminations for a discussion of items not allocated to this segment. INDUSTRIAL (In millions) 2006 2005 2004 REVENUES $33,494 $32,631 $30,722 SEGMENT PROFIT $ 2,694 $ 2,559 $ 1,833 (In millions) 2006 2005 2004 REVENUES Consumer & Industrial $14,249 $14,092 $13,767 Equipment Services 7,061 6,627 6,571 Plastics 6,649 6,606 6,066 SEGMENT PROFIT Consumer & Industrial $ 1,140 $ 871 $ 716 Equipment Services 269 197 82 Plastics 674 867 566 Industrial revenues rose 3%, or $0.9 billion, in 2006 as higher volume ($0.7 billion) was partially offset by lower prices ($0.2 billion) and the effects of the overall strengthening U.S. dollar ($0.1 billion) at the industrial businesses in the segment. Volume increases and price decreases were primarily at Plastics. Consumer & Industrial volume was unchanged as volume from organic growth ($0.9 billion) was offset by the effects of lost volume from GE Supply, which was sold in the third quarter of 2006. Revenues increased at Equipment Services as a result of the second quarter 2006 consolidation of GE SeaCo, an entity previously accounted for using the equity method ($0.2 billion), and organic revenue growth ($0.2 billion). Segment profit rose 5% as productivity ($0.9 billion), primarily at Consumer & Industrial and Plastics, and higher volume ($0.1 billion) were partially offset by higher material and other costs ($0.7 billion), primarily at Consumer & Industrial and Plastics, and lower prices ($0.2 billion). Price increases were realized at Consumer & Industrial to offset commodity infl ation, but these increases were more than offset by price declines at Plastics. Segment profit at Equipment Services increased as a result of core growth ($0.1 billion). Industrial revenues rose 6%, or $1.9 billion, in 2005 on higher prices ($1.5 billion), higher volume ($0.2 billion) and the weaker U.S. dollar ($0.2 billion) at the industrial businesses in the segment. We realized price increases primarily at Plastics and Consumer & Industrial. Volume increases related primarily to the acquisitions of Edwards Systems Technology and InVision Technologies, Inc. by our Security business, but were partially offset by lower volume at Plastics. Revenues at Equipment Services also increased as a result of organic revenue growth ($0.4 billion) and acquisitions ge 2006 annual report 55