General Electric in Mongolia: Products and Solutions

Coal Mongolia 2012February 09, 2012

Tumentsogt (Tumen) Tsevegmid Chief Representative GE International Inc.tumentsogt.tsevegmid@ge.com

Mining Transportation Energy Healthcare Lighting

Founded by Thomas Edison in 1878

Only company from the original 1896 Dow Jones index still listed today 4 businesses operating in more than 100 countries … 125+ years Over 300,000 employees worldwide Revenue $160B (2010)Assets $ 750 billion

GE’s portfolio

• Energy

• Oil & Gas

• Water & Process Technologies

EnergyInfrastructure

• Aviation

• Enterprise Solutions

• Healthcare

• Transportation

Technology Infrastructure

• Aviation Financial Services

• Commercial Finance

• Energy Financial Services

• GE Money

CapitalFinance

• Cable

• Film

• International

• Network

• Sports & Olympics

NBCUniversal

Note: Excludes C&I segment, Corporate items & eliminations

Mongolia… Mega Trends

1. Mongolia’s mining sector driving economic growth

Mega Trends in Mongolia

• Mining sector accounts 30% of GDP, 91% of exports and 40% of Government revenues

• GDP expected to grow 5-6 x in next 10 years• US $6bn investment signed with Rio Tinto for OT

3. Substantial infrastructure needs

5. Renewable Energy policies supported

6. Improving Corporate Governance

7. Synergies between China and Mongolia

2. Rapid urbanization driving greater infrastructure needs

Supporting Facts

4. Economic diversification & value-added, local mfg & svcs will be encouraged

• ~45% of total population live in capital• Investments of US$ 9 billion needed to meet

urban housing and infrastructure needs by 2030

• Installed MW to double in 10 years to 2000 MW • Construction of 1,100 km out of total 5,684 km of

railways

• Sainshand industrial park project• Mongolian Railway policy encourages domestic

manufacturing & processing, job creation

• Renewable energy up 10% by 2020 to 200 MW• Renewable Energy Law of 2007 provides

preferential rates for power from renewable energy

• Mongolian Stock Exchange to adopt LSE platform • Mongolia is to adopt European Union (EU) standards

for its goods and services• Mongolian companies successfully launched

overseas IPOs

• Mongolia’s coal, mineral resources, renewable energy resources to address China’s energy needs

• Developing Mongolia as a significant energy exporter will create synergies of scale

Market opportunities in Mongolia

• 80mm tons of

mining commodities

to be transported in

5-10 years

• Substantial Mining

Vertical Sales Opp.

– OHV, motors,

electrics

• Assess opportunity

to establish mining

service JV

• Mining leasing

opportunity

• Country demand for

200-300 locomotives

in next 5-10 years

• Interest from the

Government of

Mongolia to establish

locomotive

assembly/

maintenance JV to

supply next 15 years’

locomotive needs

• Several immediate

hospital equipment

supply opportunities

• Lighting

infrastructure

opportunities under

discussion

• Future airplane

leasing opportunity

Mining

• Current installed

capacity to be

doubled in 5 years

(from 800MW to

2200MW in 5 years;

no reserve capacity)

• Potential for large-

scale power

generation for export

(>10GW)

• Opportunities for gas

turbine, Jenbacher,

I/S, wind, crude oil

and digital energy

• Smart energy for

residential and

telecom

1 Energy

(PG)2 Rail3 Other4

GE mining

5 /GE Update2/13/2012

• Reverse Osmosis

• Hollow Fiber

• EDR/EDI/ED

• Thermal Evaporative Systems

• Mobile Water Systems

• Spiral-Wound Membranes

• Chemical Program Solutions

POWER GENERATION-GE ENERGY

•Steam Turbines

•Aero derivative Gas Turbines

•Heavy Duty Gas Turbines

•Jenbacher

•Services

DISTRIBUTION

•Power Equipment

•Power Protection

•Multilin

•Power Quality

•Motors

•Lighting

•Power Houses

Water

Treatment

& Supply

• DusTreat Wetting Agents

• DusTreat Foaming Agents

• DusTreat Binders

• DusTreat Foam Binders

• DusTreat Crusting Agents

1Dust Control 2 Motors3

Power generation

& Distribution4• Grinding

• Excavating

• Crushers

• Hoisting

• Fans & Pumps

• Generators

• Genuine GE Parts

• Conveyors

• Services

5Transportation

Transportation-Rail

• Locomotives

• Diesel Engines

• Signaling & Communication Products

• Traction Motors

• Full service Program

• On site service

Transportation-OHV

• AC & DC Electric drive system

• Electric drive system service and support

• Armature Exchange Program

• Electric Drive System Enhancements

6 /GE Update2/13/2012

Inspection

& Measurement6Condition

Monitoring7• Project engineering,

design and implementation

• On site Installation and Project Management Services

• Machinery Diagnostic Service

• Technical Training

• On site & Remote Service Contracts

• Continuous Protection and Monitoring System

• Distributed and Scanning Systems

• Wireless & Portable Condition Monitoring

• System 1r Condition Monitoring

• Sensors and Transducer Systems

• Asset Condition Monitoring Systems

• Flow

• Pressure

• Temperature

• Gas and Moisture

• Validation & Monitoring

• Ultrasonic Inspection

• Remote Visual Inspection

• Radiography

• Eddy Current

• Services

• Testing Machines

8Automation

• Process solution

• Controller and I/O

• HMI/SCADA

• Intelligent Manufacturing

• Service

• Lean Six Sigma

9Environmental

Technologies

• ThermoPleat Filter Elements

• BHA-TEX ePTFE Membrane

• Horizontal Dust Controller

• Baghouse Engineered Services

• SQ-300i Precipitator Voltage Control

• Precipitator Engineered Systems

10Financing

• Equipment Finance

• Commercial Real Estate Financing

• Working capital

• Fleet financing, insurance, maintenance and management

• Technology financing, management and control

GE rail

GE rail

•Mongolia operates one EVO, 2 Dash-7, and 14 GE Modernized TE10 locomotives today;

•Country demand for 200-300 locomotives in next 5-10 years;

•Interest from the Government of Mongolia to establish locomotive assembly/maintenance JV to supply locomotive demand.

2ZAGAL locos

Ìîäåðíèçèðîâàíû òåïëîâîçû

2ÇÀÃÀË-006,007,расходы

ñîñòàâèëи 2.7 ìëðä.òóãðèêîâ

Modernized 2ÒÝ10Ì

2005

(M62M)

2008

(TE10)

Investing in global locomotive products

310 units/kits

GEVO12 / 4400 GHPUnder Development

South

Africa

300 units/kits

GEVO16…Highest HP

10 locos for Vale

GEVO 12 & 16

• 100 locos + additional

Freightliner launch

Order (30 units)

Jenbacher J616 / EU IIIa

Delivery June 2009

Heavy Haul EVO

Kazakhstan/CIS EVO

China EVO PowerHaul Lt-Wt

C4 Evolution

25 unit launch at

BNSF

Begin delivery in

1H09

PowerHaul Mid-Wt

RailEdge

Global Rail Operations…Office systems

~200 employees

Global Signaling…..Onboard, interlocking, wayside, train control, inspection

~1000 employees

Rail control

GE Water

The biggest water treatment platform in the world

service RO UFproject

Home spring

EDR

membraneEDI

Water

chemical

Mobile water monitoring

1999

Glegg

2002

Betz

2003

Osmonics

2005

Ionics

2006

Zenon

process

chemical

GE Water & Process Technologies Overview

Chemical & Monitoring Solutions

Industrial ProcessChemical ProcessWater Services

Service delivery and relationship continuity are key… people are the differentiator - technology is the enabler

Analytical and Monitoring

Solutions

Engineered Systems Advanced technology leader focused on

difficult to treat water and wastewater/reuse

Filters & MembranesCore technology leadership

RO/EDFunding leapfrog technologies & standardization

Thermal/ZLDDifferentiating through integrated solutions

Mobile/BOOGeographic expansion & focus on industrial BOO

UF/MBR/ABMetCapitalizing on wastewater reuse

GE Dust Control Product Range

• Wetting Agents - Improve the Effectiveness of Water

as a Dust Suppressant

• Foaming Agents - Improve the Distribution of Water

and/or Reduce Moisture Addition

• Sprayed Binding Agents - Provide Long-Term Dust

Control

• Crusting Agents - Seal and Waterproof Long-Term

Storage Piles

Dust ControlMaterial Handling

Untreated Treated

Reduce employee and equipment exposure to airborne dust.

Road Dust

Dust Control

Minimizes need for water trucks and graders allowing them to be used

where they’re needed.

Untreated Treated

GE Capital

GE Capital

Commercial Lending & Leasing

ConsumerEnergy

Financial Services

CommercialAviation Services

Real Estate

Deep domain expertise & strong risk management

Middle market

lending &

leasing

Financing for

energy & water

industries

Commercial

aircraft leasing

& financing

Consumer &

retail financing

Debt & equity

financing for

commercial

real estate

’08 revenue

$26.7B

’08 revenue

$3.7B

’08 revenue

$4.9B

’08 revenue

$25.0B

’08 revenue

$6.6B

GE Energy Financial Services

25+ Years

Experience

in Energy Finance

Investment Size

$20MM - $125 MM

Expertise in

Renewable

Energy

Global equity

investor and lender

for the

energy and

water industries.

US$20 Bn.

Assets

22 GW Portfolio

Singapore HQ for SE & E Asia

Greenfield &

Operating

Assets

GE Industrial

Solutions

• Drilling/production for … land, offshore, subsea

• LNG and pipelines

• Refining/petrochemical

• Industrial power gen

• Complete lifecycle services

We are a part of GE Energy

• Power generation

• Renewable energy

• Gas engines

• Nuclear

• Gasification

• Water treatment and process chemicals

• Industrial Solutions

• Power Generation Services

• Digital Energy

• Measurement & Control Solutions

• Environmental Services

Employees: 66,000 • ‘09 revenue: $37B • Operating in 140

countriesPower & Water Oil & GasEnergy Services

Our Global Portfolio

• AC & DC Motors up to 100,000

HP

• Energy Saving AC Motors

• Severe Duty AC Motors

• Explosion Proof AC Motors

• Pump & Compressor Motors

• Generators up to 75MVA

• Power Delivery Services

• Arc Flash Studies

• Motor & Generator Repair

• Hydro Repair & Services

• Drive System Services

• Turnkey Project Management

• Molded Case Breakers

• Air Circuit Breakers

• Transformers

• Motor Control Centers

• LV / MV Switchgear

• Switchboard

• Submetering

• Trip Unit Systems

• Intelligent Switchgear

• Drives

• Motor Starters

• Switches & Indicators

Electrical Distribution & Motor Control

Industrial Services & Power Utilization

Motors &Generators

Product We offer

Wave Cast

Dry Type

Transformer

SecoCube 40.5kV

Cubic gas

insulated

switchgear

SecoGear

P/V-40.5 40.5kV

Metal-Clad

switchgear

SecoGear

12~40.5kV

Metal-clad

switchgear

SecoGear

P/V-12 12kV

Metal-Clad switchgear

P/V-24 24kV

Metal-Clad switchgear

SecoGear

P/V II-12 12kV

Metal-Clad

switchgear

SecoGear

P/V II-

7.2~12kV(J.R)

Motor Control

Center

SecoRMU 12kV

Gas insulated Ring

Ming Unit

SecoVac series

12~40.5kV

Vacuum Circuit

Breaker

SecoVac series

VB-40.5 40.5kV

Vacuum Circuit

Breaker

SecoVac series

VB2 Plus

12~24kV

Vacuum Circuit

Breaker

SecoVac series

VB2-12 12kV

Vacuum Circuit

Breaker

SecoVac series

CR193 7.2~12kV

Vacuum

Contactor

SEN Plus MLS Modula 630K Modula Plus SE Rapid DC

Switchgear

WavePro LT Spectra WavePro LTG

EntelliGuard G ACB MPact ACB Record Plus

MCCBRecord MC

MCCB

Contactor &

overload relaySurion Manual

Motor Starter

ASTAT XT

Soft starterVAT300

Variable

Speed Drive

Record SL MCCB Gerapid DC

Breaker

Redline Comfort

FunctionDMS MB line Consumer Unit

Source: Newcom Group Presentation

• A diversified investment company focused on long-term investment opportunities in or

around the territory of Mongolia– Established in 1993, Mongolian-owned, private company

– One of handful companies with modern mgmt/governance in Mongolia

– Both a developer of new dynamic businesses and portfolio owner of established companies

– Half a dozen subsidiaries and invest companies, $200+MM revenue

– Total employees: 1,700+

• Largest network infrastructure offering bandwidth wholesale, leased line services

• Annual turnover $150MM

• 2,500km fiber optic in Ulaanbaatar

• Over 1MM subscribers (37% of population)

• 56% share (3x more than next biggest competitor)

• Supporting businesses include Mobinet, Mobifinance and Newtel

Major subsidiaries highlights

• Domestic aviation service provider

• Revenue $15.6MM; EBITDA margin 10% (’09)

• 4 SAAB 340B; 180 employees

• 75% of domestic civil aviation

• Mining sector to drive air transport demand

–30% growth in charter flights for 5 years

• Projected revenue $86MM in 5 years, 23% EBITDA margin

• Salkhit Wind Park

–1st IPP and wind generator

–50MW capacity

–Annual energy production of 122,000MWh

–Operational in 2012

–PPA 23 years, at 9.5 cents/kWh (National Grid)

–Total project cost $80MM

• Newcom also plans to build 300MW+ wind park in South Gobi region

Newcom Group overview