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The Experience of a Technology and Service Provider

GE. The Experience of a Technology and Service Provider. Ahmed Ramadan Senior Vice President Sales & Project Finance. Iraq Finance Conference September, 2012. GE. Who we are.

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The Experience of a Technology and Service Provider

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  1. GE The Experience of a Technology and Service Provider Ahmed RamadanSenior Vice President Sales & Project Finance Iraq Finance ConferenceSeptember, 2012

  2. GE

  3. Who we are • The only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896 • Employee: +300,000, Existing: +100 countries • Rev. $156.8B, Earning $11.2B GE Home & Business Solutions NBC Universal Technology Infrastructure GE Capital Energy • Energy Services • Oil & Gas • Power & Water • Appliances & Lighting • Intelligent Platform • Security • Aviation • Healthcare • Transportation Cable Film International Network Sports & Olympics Americas Asia Europe, Middle East & Africa Capital Aviation Services Energy Financial Services Real Estate A diversified infrastructure, finance and media company taking on world’s toughest challenges

  4. GE in the Middle East by the numbers Revenues ($ in billions) Middle East Employee Growth 8.6 8.4 4000 6.4 2000 Employees 5.4 3.6 2.8 500 2.4 0 ‘04 ‘06 ‘07 ‘08 ’09 ’10 ’11 ‘12 ‘07 ‘10 ‘08 ‘09 ‘11 Year Year • Over 4,000 employees • ‘11 revenues: $8.6B • 16 facilities completed • 4 facilities under construction Acceleratingour growth, executing on growth, and investing in human resources

  5. GE in Iraq In Iraq since 1950’s … all divisions operating since 2004 … In country team since 2009 Awarded CF34-8C engines to power 10 CRJ900 planes ordered from Bombardier and CFM56-7 engines to power 30 Boeing 737 aircrafts More than 130 installed GE turbines with another 72 turbines being supplied to add over 7,000 MW to the grid Energy Aviation Mega Water injection project for State Company Oil Production (SCOP), main supplier for fuel treatment additive chemicals Active since the 50’s O&G sector providing power, compressors and pumping equipment to Iraq refineries, compression stations and pipelines Water O&G • GE HC has provided more than • 1500 clinical equipment • 180 conventional and mobile X-Ray • 20 Digital X-Ray • 14 CT scanners/3 MR systems GE presence in Iraq extent to all other GE divisions from light bulbs, appliances to rail and sensing and inspection equipment, all have been actively supporting the needs for Iraq infrastructure Healthcare Others

  6. Iraq Localization 2012-2015 • More than 300 employee dedicated to Iraq • Iraq is identified as one of the top 5 countries for GE focus within MENAT • Continuous expansion of local presence • Offices in Baghdad, Basra and Erbil • 10-15 O&G, healthcare project sites • Service centers at Basra operational base Current Future GE Iraq not GE in Iraq We Make Progress Together

  7. Project Finance

  8. Global project finance Global Project Finance Loan Volume Market trends • Global project finance activity increased • Rebound beginning to look sustainable? • Energy remains biggest chunk of PF activity (~$29B) but decreased by 9.4% to H1 ’09 • Driven by Indian deals, Asia continues to dominate PF market • Returning bank appetite spurs sponsors to seek longer tenors and higher leverage levels • ECAs being replaced by local funding in some markets Asia Pacific EMEA Americas $160 $140 $120 $100 $80 $60 $40 $20 $0 Proceeds (US$) 1H04 1H05 1H06 1H07 1H08 1H09 1H10 Global Project Finance Volume by Sector 1% 4% 6% 29% 8% 9% 18% Source: Thomson Reuters

  9. Project Finance – Regional Volume 2005-2009 US$bn 2006 2007 2008 2009 H1 2010 110 100 90 80 70 60 50 40 30 20 10 0 Western Europe Middle-East North America & Africa Source: Infrastructure Journal MEA Project finance trends Environment (H1 ’10): • $100B ($85B in ‘09) … Total volume of projects • $62B ($52B in ‘09) … Total debt… Govt and Multilateral: $18B • in MEA volume by 50% (from $8B to $4B) • Sustained H2 activity in GCC should make up for the gap

  10. Duhuk Erbil Nynawa Sulimaniya Ta’amim Salah Al-deen Diyala Anbar Bagdad Waset Babil Karbala Maysan Qadisiyah Najaf Thi-Qar Basrah Muthana Project finance: “The Iraq case” • Need for credible Developers, EPC & investors’ interest and capabilities • IPP Regulatory framework still in progress • Scarcity of long term funding…even more challenging on Project Recourse basis • ECAs although opening up mainly under corporate/sovereign recourse basis, remain off cover under PF structures • We are seeing appetite from equity investors for Infrastructure Project development • Regional banks & International Banks with local presence start to consider longer term commercial lending.

  11. GE Experience in Sales & Project Finance

  12. Sales & Project Finance Profile • Global customer finance unit acting as an advisor to the GE Industrial businesses... not a profit center • Reporting into Corporate Finance with shared objectives with the GE businesses • A team of ~70 professionals • Located in 16 countries

  13. Project Development Support for Our Customers Focus Areas • Financial Advisory Support • Financial Structuring • Debt arranging and syndication • Access to private equity investors • Project Development Support in parallel with business tech teams • Contract expertise • Technology/market familiarity • Consortium agreements • Funding Support • Debt Products • Mezzanine Products • Derivatives

  14. Leveraging global funding sources ECAs MLAs Int’l Banks, Ins, Pension & Finance Co Regional/ LocalBanks • OPIC • World Bank • EBRD • IFC • U.S. Ex-Im • Coface • SACE • JBIC • BNDES • SocGen • BNP Paribas • HSBC • China (CCB, ICBC, SDB) • Russia (Sberbank) • Gulf (Al Baraka) • Brazil (Unibanco Aymore, Banco do Nordeste) Grants Islamic Finance Equity • Brussels/EU • U.S. DOE, DOD • Millennium Challenge Corp • EPC/developers • Private equity funds • IDB • AFESD • ICD – Private • ABC Islamic Bank/ Retail Pools

  15. Expertise in multiple product areas Export Finance Trade Finance Project Finance • Private • Bank guarantees • Letters of credit • Deferred payments • Forfaiting • Short/med term • Mainly public buyer • Gov’t agency • Sovereign, bank guarantee • Long term • Sourcing issue • SPC • No/limited guarantees • Financing dependant on cash flows • Frequently requires ECA/ MDB support Leasing/ Lending Political Risk & Credit Insurance • Insure against expropriation, currency inconvertibility, war, etc. • Insure against corporate risk • Credit Default Swaps • Financing typically equipment specific • Applicable for more developed markets • Financing frequently requires int’l bank support

  16. GE global development When a piece of the puzzle is missing … • People – 35 person global team; expertise in development, deal structuring and development finance and return • Products - Diverse energy solutions: Thermal, IGCC, Wind, Solar (photovoltaic), Jenbacher engines powered with biofuels • Technical expertise - Access to “world-class” Technical Support Group • Access to developers - Strongrelationships with wind and thermal project developers • Knowledge- Project development expertise to support new product launches • Asset management- Long term asset management of GE owned projects

  17. GE support on IPPs/PPPs • Global network of access to International and local EPC & Developers • Dedicated Expertise team to support Iraq • EPC Screening & Matrix model to evaluate EPC capabilities • Strong Access to international & regional developers • Identify gaps and suggest solutions • Tailor make Funding solutions • Long term asset management of GE equipment

  18. ECA for utilities … + + + • Expanding capacity to help the Kingdom meet soaring power demand • More than 300 GE turbines installed • Generating half (>14GW) of SEC power generation capacity • GE technology operating in 37 power plants across 4 operating areas • Developing comprehensive long term financing solutions with US Eximbank since ‘08 • Pilot transaction $1.1B Direct loan to SEC for 3GW(PP8, Feras, Qurrayah) • Largest ever Loan in the history of US Exim: “Landmark” • Extended support under direct loans for Al Dur and PP11

  19. Working together on future projects … to win and execute successfully • Regional track record: winning IPP power projects • Developed relationships: leveraging 30 years of local presence • Financing: facilitating ECA financing to increase developer capability • Execution: seasoned regional project capability GE is committed to support Iraq meet its infrastructure needs

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