Innovation Beyond Boundaries GE in China title will go here

Transcription

1 Innovation Beyond Boundaries GE in China title will go here Tim Schweikert June 29 th, /

2 Our vision Help solve China s toughest problems and improve the quality of life by being a leader in China-based global partnerships Innovation catalyst Clean: energy, transportation, water Innovative healthcare 21st century leadership talent development 2/

3 China s 12 th Five Year Plan Sustainable growth & Social harmony Drive balanced development GDP ~7%; boost domestic consumption and contain CPI < 4% GDP Growth 11 th FYP ( ) 12 th FYP ( ) Target Actual Target Est. Achieve environmental sustainability increase clean energy contribution (11.4%); reduce consumption per unit of GDP: water 30%, energy 16%, carbon dioxide emission 17% Improve social well-being per capita income growth >7%, expand social pension schemes & basic healthcare insurance coverage at 94% of population (+3 points) Inland China: industrialization, urbanization& infrastructure construction Commit to reform & opening-up Transformation Close regional & rural development gap urbanization 51.5% Accomplish new industrialization State-sector reform Factor prices & interest rates marketization Gradual RMB internationalization Coastal China: economic transition Push for innovation R&D at 2.2% GDP Upgrade manufacturing Develop 7 new strategic industries Promote services Int l trade: orient to both imports & exports Investment policy: equal emphasis on FDI inflow and Chinese companies outbound investment 3/

4 Solving China s toughest problems Global revenue ~$21B $6B investment 100+ products Clean Energy Eco MOU signing with NDRC in 2006, extended partnership in June 2011 Reduced GHG emissions by 22%, improved energy intensity by 34% by 2009 Eco revenue growth at 88% from 2007 to Eco sales in China: $689MM 31+ Eco products are already applied in China 12th five year plan EV infrastructure Shale gas/igcc Energy efficiency Renewables Affordable Healthcare Launched in China in 2009 Extensive partnership with MOH Spring Wind Initiative targeting primary care sector Various public health awareness projects Pink October (Breast Cancer) Preventive campaign against brain stroke 5 China sites certified by healthahead 12 th five year plan Rural distribution Local customer innovation Information technology Multiple price points Positioning GE as China s preferred partner 4/

5 A deep relationship with China Premier Wen Jiabao Dec Vice Premier Li Keqiang May 2009 President Hu Jintao Jan Bring to China GE s 1.Products 2.Technology 3.Management process 4.Talent development 5.Sino-U.S. friendship 6..long term GE has leading technology and China has huge market and opportunities. I can see the cooperation is not only on the upgrading 10 industries by hi-tech but also, most importantly, the new industries. GE -- A glue of US-China economic relationship, one of the world s most important bilateral trade ties. 5/

6 Invest $2B in R&D,Technology and Financial Services Partnerships - $500MM to build Innovation Centers Build the Innovation Centers where we can co-create with customers to solve their greatest challenges 6/

7 First phase Chengdu, Xi an, Shenyang 7/

8 GE s involvement in China s rail industry development China Mainline Locomotives CML 300 CML already in operation in china railway networks, 300 more in the pipeline JVs US CSR + GE JV Collaborate with MOR + CSR on HSR, Metro and Light Rail opportunities in North America and other international markets. A joint venture company with CSR Qishuyan Locomotive Co., Ltd. to develop, build and service GE s Evolution Series locomotive diesel engines in China. A framework agreement to form a 50/50 joint venture with Chengdu Locomotive & Rolling Stock Works, a company owned by CSR to develop propulsion system sets, sub assemblies and parts for diesel locomotives. An agreement to enter into a 50/50 joint venture with Beijing National Railway Research & Design Institute of Signal & Communication (CRSCD) to supply railway and urban transit signaling systems. 8/

9 GE's involvement in China's Healthcare project GE Healthcare to localize innovations: $1B + local business Plants Offices R&D center 5,400 employees 95%+ local leadership 6 manufacturing, 3 design centers 700 design engineers 166 product portfolio 22,600 installed base Logic C-series U/S Starlight X-ray Brivo CT 315/325 Cost 100% localized Quality Increase uptime Access 9/ 63% sold to 1 st buyer

10 GE's involvement in China's big passenger plane project CFM International, the 50/50 venture between GE and SAFRAN Group, will develop its first engine to incorporate next-generation technologies by launching the LEAP-X1C engine for the C919 single-aisle aircraft A joint venture between GE Aviation and Aviation Industry Corporation of China (AVIC) to develop and market new generation avionics systems with an immediate priority on supporting development of China s first home-grown big passenger jet. 10 /

11 Challenges & opportunities IP protection indigenous innovation Government level playing field Global innovation vs Regional innovation Execution risks policy changes Relationships bridging cultural differences Leveraging China s global aspirations 11 /

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