Confidential. Not to be copied, distributed, or reproduced without prior approval.

L’alta Efficienza delle Turbine AeroderivateGE al Servizio dell’Industria Cartaria

Patrizio Prunecchi – Sales Director GE PowerDino Pezzella – Senior Sales Manager GE Power

May 9, 2018

GE Power

Powering the Futurewith Gas Power Systems

3

GE of the Future

Focused Portfolio of Industrial Businesses: Smaller, Simpler, Best-in-Class, Essential for Modern Life

Built-for-the-Future Capabilities

Additive R&DDigital Culture

Industrial domain experience + digital expertise

Global ScaleReinvigorate culture built on

125 years of reinvention

Focused end markets + Competitive strengths = Investor performance

Power the World Transport People Safely Save Lives

• Powering more than 30% of the world’s power

• ~1,600 GW installed capacity

• Expansive global reach … >140 countries

• Equipping 90% of transmission utilities worldwide

© 2017 General Electric Company. Proprietary. All Rights Reserved.

AUTOMATION & CONTROLS

GASPOWER

SYSTEMS

GRIDSOLUTIONS

GE HITACHI NUCLEAR ENERGY

POWER CONVERSION

POWER SERVICES STEAM

POWER SYSTEMS

INDUSTRIAL SOLUTIONS

The NEW GE Power

Being divested Target close date 2018-a)

(a- Subject to customary closing conditions, including approval by regulators

© 2018 General Electric Company - All rights reserved

Our global installed base

5

~5,900Gas turbines

~1,600Aeroderivative

gas turbines

~9,900Generators

~300Heat recovery

steam generators

~1,000Boilers

~2,600Utility steam

turbines

~3,400Industrial steam

turbines

of installed capacity …Equivalent power needed to supply ~1.5B homes~1,600 GW ~28,000

power generation assets globally … The world’s largest installed base

© 2018 General Electric Company - All rights reserved

© 2018 General Electric Company - All rights reserved

Portfolio by rating

ENGLISH!!!

9HA.02

9HA.01

9F.05

9F.04

9F.03

GT13E2

9E.04

9E.03

LMS100

6F.03

LM9000

LM6000

6F.01

6B.03

LM2500

TM2500

557 MW

446 MW

314 MW

288 MW

265 MW

210 MW

145 MW

132 MW

117 MW

87 MW

75 MW

57 MW

57 MW

44 MW

34 MW

34 MW

50 HZ portfolio by rating

7HA.02

7HA.01

7F.05

7F.04

LMS100

7E.03

6F.03

LM9000

LM6000

6F.01

6B.03

TM2500

LM2500

384 MW

290 MW

243 MW

198 MW

117 MW

91 MW

87 MW

8 75 MW

57 MW

57 MW

44 MW

36 MW

36 MW

60 HZ portfolio by rating

H-CLASS

F-CLASS

B- and E-CLASS

AERODERIVATIVE

6

© 2018 General Electric Company - All rights reserved

Plant equipment portfolio

E-RoomsPlant DCS … control and digitalMV/LV distribution equipment

GCB, power transformers ...

Combined cycle steam turbines80-700 MW, axial, lateral

Heat recovery steam generatorsOnce-through, horizontal, vertical

CondensersFor horizontal and vertical ST exhausts 25 MWth ... >1000MWth

Bottoming cycle Mechanical BoP Electrical BoP

PumpsBFW pumps … MW scaleCritical pumps … 100s kW scale

7

8

Expanding the GE Offering

Best steam cycle… adds 20%+ pts to eff.

Grid Solutions

GE contribution

Alstom contribution

Cycle time for quicker power• Modular power island

configurations

• Scalable global project capability

CREATING MORE VALUE

Combined cycle performance• Broader gas turbine

portfolio

• Bottoming cycle optimization

SCOPE

TURNKEY PLANTPOWER ISLAND ENGINEERED EQUIPMENT PACKAGEEQUIPMENT ONLY

Better customer outcomes ... increased growth opportunities9HA Gas Turbine Solutions May 9, 2018

© 2017, General Electric Company. Proprietary information. All rights reserved.

Confidential. Not to be copied, reproduced, or distributed without prior approval.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS:

This document contains "forward-looking statements" – that is, statements related to future

events that by their nature address matters that are, to different degrees, uncertain. For details

on the uncertainties that may cause our actual future results to be materially different than

those expressed in our forward-looking statements, see

http://www.ge.com/investor-relations/disclaimer-caution-concerning-forwardlooking-

statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We

do not undertake to update our forward-looking statements. This document also includes

certain forward-looking projected financial information that is based on current estimates and

forecasts. Actual results could differ materially. to total risk-weighted assets.]

NON-GAAP FINANCIAL MEASURES:

In this document, we sometimes use information derived from consolidated financial data but not presented in our

financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of

these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission

rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an

alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations

to their most directly comparable GAAP financial measures are posted to the investor relations section of our

website at www.ge.com. [We use non-GAAP financial measures including the following:

• Operating earnings and EPS, which is earnings from continuing operations excluding non-service-related pension

costs of our principal pension plans.

• GE Industrial operating & Verticals earnings and EPS, which is operating earnings of our industrial businesses and

the GE Capital businesses that we expect to retain.

• GE Industrial & Verticals revenues, which is revenue of our industrial businesses and the GE Capital businesses

that we expect to retain.

• Industrial segment organic revenue, which is the sum of revenue from all of our industrial segments less the

effects of acquisitions/dispositions and currency exchange.

• Industrial segment organic operating profit, which is the sum of segment profit from all of our industrial segments

less the effects of acquisitions/dispositions and currency exchange.

• Industrial cash flows from operating activities (Industrial CFOA), which is GE’s cash flow from operating activities

excluding dividends received from GE Capital.

• Capital ending net investment (ENI), excluding liquidity, which is a measure we use to measure the size of our

Capital segment.

• GE Capital Tier 1 Common ratio estimate is a ratio of equity

L’alta efficienza delle turbine aeroderivateGE al servizio dell’industria cartariaMay 9, 2018

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Industria Cartaria in Italia - Panorama

May 9, 2018 10

Una Grande Opportunità

• L’Industria Cartaria italiana si colloca al quarto posto in Europa dietro Germania, Svezia e Finlandia

• Cresce l’export….+8,5% carte per usi grafici (+8,5%) e +3,5% packaging

• Utilizzo di materie prime rinnovabili e altissima capacità di riciclo….80% riciclo negli imballaggi….60% di materia prima principale è costituita dalla carta da riciclare

• Le dinamiche del mercato (on line shopping, fast food, food take-away) richiedono più carta per imballaggio (+1,8 % primi 8 mesi 2017)….il riciclo pertanto aumenterà

• Le nostre aziende si stanno preparando al cambiamento

• Gli investitori stranieri espandono o avviano nuove realtà produttive

• La competitività….passa dalla riduzione degli alti costi energetici

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Industria Cartaria in Italia – Bertonico Lodigiano

May 9, 2018 11

Bertonico, una maxi-cartiera sull’area ex Gulf

• Eren Holding, uno dei colossi economici turchi, costruirà una nuova cartiera nell’area dove sorgeva la raffineria Sarni-Gulf di Bertonico

• La capacità della cartiera sarà di ~500mila ton/anno di cartone ondulato…a fronte di 650 milioni di Euro di investimento

• Garantirà 600 posti di lavoro al completamento, 400 posti per il primo lotto (2 anni) e altri 200 pesti entro i prossimi 5 anni

• Pieno supporto delle maestranze che vedono la grande opportunità di creare nuovi posti di lavoro e dar lavoro alle aziende lodigiane nella realizzazione dei capannoni….una boccata d’ossigeno per un territorio con al disoccupazione al 7,4%

• Eren stà lavorando per ottenere la necessarie autorizzazioni entro il 2018 e ottimizzare il consumo e il costo energetico

https://www.ilcittadino.it/cronaca/2018/03/01/cartiera-entro-un-mese-il-progetto-ma-il-via-libera-arriver-da-roma/whBu7IF0I5MngDt2iXdnx3/index.htmlhttps://www.ilcittadino.it/cronaca/2017/10/18/la-cartiera-a-bertonico-porter-tra-900-e-1200-posti-di-lavoro/23BdFfWvZCk6BgkQykLlx3/index.htmlhttp://milano.corriere.it/notizie/cronaca/17_maggio_04/lodi-arrivano-turchi-pronti-650-milioni-un-immensa-cartiera-ac29f394-303d-11e7-a298-52518e2719d0.shtml?refresh_ce-cp

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Cartiera di Bertonico – Scelta Soluzione Ottimale

May 9, 2018 12

Ricerca degli elementi che soddisfino l’equazione ambiente, investimento, profitto

• Convivenza tra industria e ambiente….basso impatto ambientale

• Bassissime emissioni in atmosfera….ampiamente < limiti di legge

• Altissima affidabilità e disponibilità della produzione di energia

• Soddisfare integralmente il fabbisogno energetico della cartiera

• Riduzione del costo dell’energia che grava sul prodotto finito

• Utilizzo di tecnologie collaudate e consolidate

• Facilità di utilizzo e flessibilità operativa

• Bassi costi d’investimento e di gestione

• Cogenerazione ad alta efficienza

• Eleggibile per certificati bianchi

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Cartiera di Bertonico – Soluzione Ottimale

May 9, 2018 13

Alta Efficienza + Flessibilità + Valore Aggiunto = LM6000PF+ SPRINT®

• TURBOGAS di ridotte dimensioni e rumore….riduce l’impatto ambientale

• Ciclo manutentivo esteso (30k / 60k) con fermata annuale in ombra

• 99.8% Affidabilità e 98.2% Disponibilità dimostrate (ORAP)

• Tecnologia collaudata….prima turbina spedita il 16 Aprile 1992

• Prodotto di riferimento nll’industria cartaria

• Altissima efficienza con flessibilità operativa unica

• Recupero del degrado delle prestazioni contestualmente alle 30K e 60k

• Lease engine disponibile per limitare la fermata della cartiera

• Bassi costi di gestione, manutenzione e logistica

• Parti Turbina e Centro manutenzione in Italia (AVIO, Brindisi)

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Turbine Aeroderivate GE nell’Industria Cartaria

May 9, 2018 14

Sono nate per volare, perché leggere e compatte….

……ma trovano spazio anche in cartiera, dove lavorano 24 ore al giorno ininterrottamente, abbinando elevati rendimenti elettrici e basse emissioni a costi di produzione molto bassi.

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Turbine Aeroderivate GE

May 9, 2018Presentation Title 15

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Turbine Aeroderivate GE

May 9, 2018 16

Il modello di business…..dai primi anni ‘70

LM =LandUnits

TM =MobileUnits

Con un costo limitato di R&S convertiamo un motore d’aero disuccesso in una turbina a gas industriale ad alta efficienza!

Al momento della sua «industrializzazione» il motore haaccumulato un enorme numero di ore di funzionamento concombustibile liquido

© 2012, General Electric Company. Proprietary information. All rights reserved.

17

© 2012 General Electric Company

LMS100100MW

CF6-80C2/E1A330/B747/B767LM6000*

LM2500

LM2500*+/G4

TF39/CF6-6C5/DC-10

40-55MW

18-24MW

28-34MW

62 GTGs570,512 OH

1,227 GTGs37,400,000 OH

2,468 GTGs94,100,000 OH

© 2012, General Electric Company. Proprietary information. All rights reserved.

18

Turbina Aeroderivata GE LM600018

Un successo che dura da 26 anni

Confidential. Not to be copied, distributed, or reproduced without prior approval.

LM6000 Operating Experience

May 9, 2018Presentation Title 19

© 2017 General Electric Company. Proprietary information. All rights reserved. Subject to restrictions on cover page.

LM6000 industrial fleet operating experience1

1 Estimated as of March 30, 2017

PF+ hours as of June 8, 2017

SAC engine first sale: 1991

DLE engine first sale: 1994

LM6000 fleet All SAC DLE

Total engines 1,277 856 421

Total operating hours (million) 37.4 25.8 11.6

Fleet leader engine hours 176,409 176,409 157,094

All PA PB

Total engines 160 140 20

Total operating hours (million) 10.3 8.8 1.5

Fleet leader engine hours 176,409 176,409 162,140

All PC PD PF

Total engines 942 703 239 157

Total operating hours (million) 25.5 16.9 8.6 1.5

Fleet leader engine hours 149,834 149,834 124,806 88,850

All PG PH PF+

Total engines 18 13 5 3

Total operating hours (thousand) 97.0 79.0 18.0 1.0

Fleet leader engine hours 20,920 20,920 7,660 1,011

© 2017 General Electric Company. Proprietary information. All rights reserved. Subject to restrictions on cover page.

LM6000 industrial SAC and DLE fleet experience121

Dry Low Emissions

SingleAnnular

Combustor

Fuel System Engines Hours

Gas

Dry 16 0.7 Million

Steam Injection 50 2.9 Million

Water Injection 416 11.5 Million

LiquidDry 8 0.3 Million

Water Injection 18 0.7 Million

DualDry 9 0.8 Million

Water Injection 335 8.9 Million

Fuel Engines Hours

Gas 388 11.1 Million

Dual 33 0.5 Million

1 Estimated as of March 30, 2017Does not include all lease or spare engines

© 2017 General Electric Company. Proprietary information. All rights reserved. Subject to restrictions on cover page.

LM6000 … Operational flexibility with demonstrated experience

248 LM6000 units reporting to ORAP® for 12 month period ending December 2016Source: ORAP®; All rights reserved: SPS®

Hours operated in prior 12 months

Sta

rts

in p

rio

r 1

2 m

on

ths

Continuousbase-load

Seasonal base-load

Mid-merit,quick dispatch,

load-following

Peaking

Dailydispatchbase-load

Unit with most hours in 20168678 hours = 98.8% availability

Proven baseload, continuous operation in demanding environments

Excellent start reliability!Top 63 percentile units had 100% start reliability in 17518 starts attemptedAll 248 units had a mean start reliability of 98.8% in 29934 starts attempted

© 2017 General Electric Company. Proprietary information. All rights reserved. Subject to restrictions on cover page.

• Aircraft engine andLM family experience

• Continuously working to enhance availability and reliability

• Lease engine and rotable component availability

• Aircraft enginemaintenance philosophy

Data through December 2016, Source: ORAP*; All rights to underlying data reserved: SPS*

Gas turbine and package

50th percentile

12 month rolling average

305 units reporting

SCP

GT Pkg BOP

Reliability and availabilityGas turbine + Package

23

99.8 99.7 99.8 99.8

98.3 98.3 98.2 98.2

90

92

94

96

98

100

Reliability AvailabilityDec-13 Dec-14 Dec-15 Dec-16

© 2017 General Electric Company. Proprietary information. All rights reserved. Subject to restrictions on cover page.

• Aircraft engine andLM family experience

• Continuously working to enhance availability and reliability

• Lease engine and rotable component availability

• Aircraft enginemaintenance philosophy

Data through December 2016, Source: ORAP*; All rights to underlying data reserved: SPS*

Gas turbine and package

50th percentile

12 month rolling average

305 units reporting

SCP

GT Pkg BOP

Reliability and availabilityGas turbine + Package

24

90

92

94

96

98

100

Dec-13 Dec-14 Dec-15 Dec-16

75th percentile

50th percentile

25th percentile

© 2017 General Electric Company. Proprietary information. All rights reserved. Subject to restrictions on cover page.

Heritage: CF6 Aircraft Engines

Data through April, 2017

Turbofans are mechanical drive gas turbines directly connected to high flow, low boost compressors – designed for variable speed & load

Turbine Aeroderivate GE

Grazie!……..se avete domande

Patrizio Prunecchi – Sales Director GE Powerpatrizio.prunecchi@ge.com

Dino Pezzella – Senior Sales Manager GE Powerdino.pezzella@ge.com