1Global Partner Summit 2017: Competing to Win

February 14 – 17 | Napa, California

Global Partner Summit 2017: Competing to Win

Why Germany?

Stephan ReimeltPresident and CEO Germany and Austria

Why Germany?What is the potential?

What are the challenges?

How can we be successful together?

Why Germany?

We have 1200 types of bread, a huge variation of sausages and beer and we are hosting the Oktoberfest.

A very unique culture

Slow-growth world + deflation

Government dysfunction + geopolitical risk

Big is bad

Productivity rules … “eat or be eaten”

Disruptive innovation attacks every industry

Why Germany?

The World

Stable growth and solid economy

Strong German Government functions

Mittelstand is the backbone of the economy

Growing big in Germany

Germany

SME´s are agile and long term investors

Domain expertise counts

Why Germany? Sound economy

• World´s 4th largesteconomy and largesteconomy in the European Union

• The Mittelstand (SME) – theheart of the economy (99,3% of all companies are SME´s)

Global player

• Global export champion:

• Germany is highly interlinked withthe global economy

• Every second euro is generatedthrough an international businesstransaction

Digital agenda for the German manufacturing base

• German as one of the world`s mostimportant manufacturing base

• German business is ready for digitization• The Federal Government is driving digital

change• Huge digital capabilities – €500B by

2025

Strong brand and successful products

• Chemical: BASF – #1 worldwideAutomotive: Volkswagen #1 BMW, Daimler –in top 10

• Transport & Logistics: DHL - #1 worldwide, DB - #5

• Machinability – Trumpf - #1• Many hidden champions

Germany: $310BChina: $260BJapan: $170B

Current accountsurplus:

One of the most attractive markets in the world

Why Germany?

Top 4 export destinations1. USA ($121B)2. France ($119B)3. UK ($100B)4. China ($96.7B)

Top 5 exports1. Automotive ($249B)2. Machines, engines, pumps ($226.1B)3. Electronic equipment($131.1B)4. Pharmaceuticals ($76.1B)5. Medical, technical equipment ($61.5B)

“Worldchampion in exports“ - #1 influencer for technical equipment

What Is the Potential?

HealthcareEnergy

DisposalTransport

Water Infrastructure

“Accelerating digitization could add billions of euros to economic growth in less than a decade” - McKinsey

• Germany operates only at 10 percent of its digital potential (while the US uses 18 percent of it)

• Every manufacturing sector is affected by digital (from automotive to the chemical and pharmaceutical industries)

• In five years, more than 80% of companies will have digitized their value chain

• By 2020, European industrial companies will invest over €140B annually in Industrial Internet applications

• Germany is a net importer of digital services from the US

• New political and economical focus on remunicipalisation in the local utilities (Stadtwerke)

• Stadtwerke will use a local platform for energy, supply, disposal and healthcare

Together we can help Germany with the digital transformation

What Are the Challenges?Make it in Germany and be successful in a fragmented place

Alongside the major, world-famous companies, there is also a whole range of small and medium-sized companies in Germany which provide a large number of jobs and are extremely productive

• German companies take a long-term approach to business

• Business is based on stable client relations

• The companies are in close ties to the region in which they are located

• Priority is to secure the company’s long-term existence and place great value on lasting relationships with customers, suppliers and other businesses

• SME´s dominate narrow niches globally and embrace globalization without losing their roots

• German companies have high-level expertise & insight in their business

Since this is a very fragmented market, we need to have a different approach for Germany

Partner with local expertise

Build long term relationships

Understand the German business

Large installed base

How Can We Be Successful Together?

ü We are local with over 11.000 employees and over 50 sites

ü We can look back over 130 years of GE´s history in Germany

ü We have an extensive, well established network

ü We installed over 2.500 decentralized power plants in theGerman industry

We build credibility, trust and long term relationshipsbased on local domain expertise

How Can We Be Successful Together?• Hannover Fair 2017

Why should GE attend at the Hannover fair?

• World’s leading trade show for industrial technology

• ~200,000 visitors (68% decision makers), 6,500 exhibitors, 2,500 media representatives

• Key business decision makers and numerous political delegations (EU Commissioner for Energy etc.) present

April 24 – 28 2017

Positioning GE as the leading Digital Industrial company in Germany

GE’s premier Industrial Internet event is coming to Berlin in 2017

• Minds + Machines 2017

• Energy Awards 2017

• GE supports the local alliance program bysharing the huge amount of local domainexpertise

Together with the Handelsblatt Energy Academy, GE awards the leaders and innovators of the German “Energiewende”

Let‘s do it together.

13Global Partner Summit 2017: Competing to Win