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“This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Healthcare Re-imagined
Reinaldo GarciaPresident & CEOGE Healthcare InternationalSept 6, 2006
2 /
Key messages for today
• GE Healthcare is uniquely positioned in a great space
• A clear vision built on a strong foundation
• Physics + Biology + IT = new age of diagnostics
• GE Healthcare to grow by improving industry efficiency and efficacy
3 /
GE Healthcare
$17B global business unit of GE
$1B+/year in R&D investment
45,000 employees worldwide
Core strengths in Bio-Sciences, Technology, Services
GE heritage for vision and execution
Only GE
Three complementary platforms … creating new markets
Medical Diagnostics
• Contrast agents• Molecular diagnostics
Information Technology & Services
•Electronic medical records•Revenue cycle
Diagnostic Imaging
• CT, PET/CT• MR, X-Ray
•Performance solutions•Multi-vendor services
Life Sciences
•Discovery systems•Protein separations
Clinical Systems
• Ultrasound• Critical care systems
Broad Based Diagnostics
5 /
Healthcare Re-ImaginedWe strive to see life more clearly. Our Purpose is to
help predict, diagnose, treat and monitor disease earlier so people can live life to the fullest
"Early Health"Prevention/PredictionDetailed Patient InfoEarly DiagnosisTargeted Therapies
"Late Disease"Symptom BasedIncomplete Data Managing IllnessStandardized treatment
From To
Driving clinical efficacy & Healthcare system efficiency
6 /
Molecular medicine: The right next stepEf
ficie
ncy
Molecular imaging (2000+)Biology, Nanotech, CAD
Analog (00 to 80’s) X-ray & Paper
Digital (80’s to 90’s)CT, MR, PACS
Sensitivity& specificity
Clinical certainty
7 /
GE Healthcare Molecular Imaging Capabilities
Diagnostic ImagingClinical ImagingPre-clinical ImagingPet Radiopharmacy
Life ScienceProtein SeparationsGene Expression technology
Medical DiagnosticsContrast AgentsRadiopharmaceuticalsGenomics, Proteomics &Cellular Biomarkers
Academic CollborationsStanford UniversityMD Anderson Cancer CenterHarvard Medical Shool
Pharma PartnershipsEli LillyPfizerRoche
New Tracer DevelopmentPIBMIBG
Clinical TrialsPET Investigation Network (PIN)
ImanetHammersmith, UKUppsala, SwedenTurku, Finland
Global Research CentersImaging TechnologyTargeted Agents2500 ScientistsChina, India, Germany, USA
Information TechnologyComputer Aided detectionIntegrated InformaticsElectronic Medical Records w/ Gene pre-disposition
ImanetNetwork of molecular ImagingResearch & development Centers20+ clinical PET tracers
GE Healthcare Business Platforms
Three complementary platforms … creating new markets
Medical Diagnostics
• Contrast agents• Molecular diagnostics
Information Technology & Services
•Electronic medical records•Revenue cycle
Diagnostic Imaging
• CT, PET/CT• MR, X-Ray
•Performance solutions•Multi-vendor services
Life Sciences
•Discovery systems•Protein separations
Clinical Systems
• Ultrasound• Critical care systems
Broad Based Diagnostics
9GE Healthcare
DI: Strong global growth opportunity
11% AAGR/ Growth
CT
MR
X-ray
FI
2006E
~$5+
1998
$2.4
($B)
$2.5+B of Organic Growth Technology Leadership
Other
CT… #1 market position• New products: BrightSpeed
Nuclear Medicine/PET… #1 market position• New products: Infinia Hawkeye
MR… #1 market position •New products: HDe, HDx 1.5T and 3.0T
X-ray… #2 market position • New products: Seno Essential, Definium 6000
Driving clinical efficacy
10GE Healthcare
… a massive growth opportunity and health impact by accessing
“asymptomatic” population
A big market in a “symptomatic” disease management paradigm
Cardiac disease
Alzheimer’s disease
Colon cancer
Breast cancerBreast
Colon
Brain
Heart
Improving patient care and Healthcare economics
CardiologySudden cardiac death is 1st clue of underlying heart disease for 50% patientsCVD causes 4.3 million deaths per year in EuropeCVD costs EU economy €169 billion p.a.
Colon Cancer5-year survival of 90% for those diagnosed early – localized disease5-year survival drops to 66% when cancer is locally advanced5-year survival only 8.5% if cancer spreads (metastatic disease)
DI: From Late Disease to Early Health
11GE Healthcare
SPECT
CTUltrasound
MRI
TargetedSPECT
PET
Spanning anatomical to functional images
18FDG
GenomicsProteomics
Molecular Targets & Receptors
Molecular Pathways
Pre-disposition
Cath/ EP Intervention
Diagnostics &Therapy
MetabolismViability
PerfusionFunction
Anatomy
12GE Healthcare
Moderate(Symptomatic)
Severe(CHF)
Mild(Asymptomatic)
General PracticeFamily PracticeInternal Medicine
CardiologistEchocardiographer, Nuclear
InterventionalCardiac Surgeon
MedicalStatins
Behavior modification
Non-surgical InterventionPTCA CABGStenting
SurgicalICD
Transplantation
Pre-test probabilityRisk factorsCalcium Score
Cardiac FunctionPerfusion & ViabilityCoronary anatomy
ViabilityInnervation
VisipaqueVCT
OptisonU/S
MyoviewSPECT
Thallium-201SPECT
VisipaqueCath
Biopsy
OmniScanMRI AdreView
SPECT
Myoview (Dual Isotope)
CZT SPECT
MyoviewSPECTVulnerable
PlaqueSPECT Omnipaque
Cath
Cardio focus: Medical Diagnostics for each stage of detection
DiseaseState
Prognostic Data
Physician
GE ProductFit
Therapy
13GE Healthcare
Medical Diagnostics targeting Neuro: Next $1B imaging market
US incidence
(MM)
DATSCAN
high
low
Alzheimers6.7
Epilepsy3.0
Stroke5.7
1.6
Referring physicians& imaging specialists
Stroke4.5
Alzheimers4.3
Mood disorders25
Parkinsons1.0
Epilepsy2.3
2005 2010
Mood disorders30
Clinical Need Driving the DaTSCAN* Clinical Program• DaTSCAN images dopamine
transporters in brain…sensitivity differentiates diagnosis for both Parkinson’s and Dementia with Lewy bodies
• DaTSCAN results in fewer patients treated with inappropriate therapy
• DaTSCAN growth in Europe $20MM in 2 years
• Pursuing Parkinson’s product in USLate stage PS
Normal Patient
Report published
0
10
20
30
40
50
60 Reimbursement Granted
Parkinsons
*Source: Health Economic Research Project, “An assessment of the cost-effectiveness of DaTSCAN SPECT for the diagnosis of patients with clinically uncertain Parkinsonism.” Approved in EU only.
Creating a market in Parkinson’s and Dementia with Lewy bodies
2004 Weekly DaTSCAN Sales in Belgium
14GE Healthcare
14%AAGR
Clinical Systems
• High “patient touch”• Diverse portfolio of leading brands• Broad footprint in hospital and non-hospital segments• International growth
Keys to successValue creation
Product breadth
Cost management
Balanced investment
GE Ultrasound ($B)
MonitoringSolutions
Life SupportSolutions
Ultrasound
ServicesDiagnosticCardiology
BoneDensitometry
MaternalInfant Care
Revenues
‘00 ’06E
$0.8
$1.7
Revenues: $3.7B
15GE Healthcare
Ultrasound Leadership: A global technology migration
Radiology/emerging OB/Gyn Cardiovascular
LOGIQ 9
LOGIQ 7
LOGIQ S6
LOGIQ P5
LOGIQ 5
LOGIQ 3
LOGIQ i
LOGIQ e
Voluson 730E
Voluson 730P
Voluson 730PV
Voluson i Vivid 7
Vivid 4
Vivid 3
Vivid i
Vivid e
6 new platforms in 2006
’06 new platform
LOGIQ 9400 lbs.
LOGIQ e10 lbs.
Customer value creation• Value for traditional and
new customers
Product breadth• Software-based platform• Clinical applications
Cost management• Global COE• Annual ICV targets
Balanced investment• Miniaturization “big swing”
platform
Sales
‘02 ’06E
$5
($ MM)
GE Compact Ultrasound Series
Product breadth
Start-up to $200M in 3 years
Compact Ultrasound
$180
16GE Healthcare
$40B+ in 2005
Healthcare IT is "HOT"
CXO
IT’s all about …• Quality • Safety• Workflow
IT’s all driven by …• Growth in outpatient services • National programs …
UK & Canada• Pay for performance • Continuity of care
IT’s a growth opportunity …• EHR in < 20% physician offices• #1 priority for CXOs
• IT improves clinical efficacy & lowers healthcare costs
• $40+B segment is growing at double-digit rate
• GE has a broad suite of products & services …#1 in the space
• GE is well positioned for growth
17 /
Hours of antibiotic therapy Days in hospitalCosts for hospital
w/IT Assistant
10310
$26K
base
33017
$44K
Healthcare IT … a practical example
70%40%40%
From Paper
Outcomes published … New England Journal of Medicine
to Digital with improved clinical information
Better patient outcomes at
lower cost
18GE Healthcare
Building a World-class HCIT business
2000 2002 2004 2006 E
Physician OfficeAdmin/HIS
In-Patient
Imaging &Clinical Apps
$370
$605
$930
~$1.9B• 30% CAGR … 17% organic growth• >1,500 facilities ... >35 countries
DeviceIntegration
ClinicalDepartments
PhysicianOffices
ClinicalContent Workflow
PACS EHR
($MM)
New business
New customers
Commercial wins
New products
19GE Healthcare
GE Healthcare Services Growth
$0.8
$3.0
2000 2005 CAGR%
Healthcare IT 30+
Performance solutions 40+
Contract services 10
Install base & software 10+
Refurbishment 15+
‘95 ‘00 ‘05
$5.4Revenue($ in billions)
Services growth … ~7X in last 10 years
20GE Healthcare
Life SciencesKey Drivers• Pharma growth in Monoclonal antibody
therapy & Vaccine pipelines
• Biotech R&D spend increasing
• Pharma research increasingly protein interaction and cell focused
• Increasingly becoming Monoclonal antibody / CMO manufacturing base What is Life Sciences?
• Development and manufacture of systems for the purification of biopharmaceuticals
• Technologies and systems for drug discovery research and molecular diagnostics
• Technologies to provides visibility of early trends such as cell therapy
Business advantages• Preferred supplier to most Biopharma/Pharma
companies
• Strong franchise in BioProcess for biopharmamanufacturing
• Breakthrough Technologies for Cellular and Protein Sciences
• New Technologies from Biacore acquisition key in BioPharma drug discovery
$1.2B Revenues
Bioprocess
Protein Scs
Discovery Scs
Genomic Scs
SvcsBia
21GE Healthcare
GE Healthcare Globalization
$7+ B Est. International Sales … 15+% AAGR
Over 50% of Employees outside of US
Emerging countries represent a major growth platform…
• China 10-15%• India 15-20%• SEA 20-25%• MEA 20-25%• EE 15-20%
$16.9
Regional Sales Mix
Americas Japan
China
Europe
MEAROA• ~45% revenues from outside the US
22GE Healthcare
GE Healthcare Int’l Financial Outlook
'00 '06 E
Europe
Japan
ChinaAGM
Revenues
DriversEurope• PPP gaining momentum ... UK, Ib, Ger, It.• EU Cohesion to focus on under avg regions• IT growth area
MEA• Entrepreneurs• Emerging medical insurance• Oil money and financing
Japan• High-end reimbursement up … replacements• Specialization ... DIC’s & Women’s ctrs• COE for compact products
China• Gov’t slowing purchases in near term• Health insurance coverage to grow from
25% to 80% by ‘10• Value outpacing premium
AGM• India gov’t spend, PPP, entrepreneurs• Malaysia, Vietnam building infrastructure• Steady growth in Korea/ANZ
~$7+B
~$3BMEA
23GE Healthcare
The Developing WorldHuge Healthcare Needs …• Large population w/o access to
Healthcare … India, China, Africa• Undeveloped Healthcare
Infrastructure … EE, MEA• Financing needs … access to funding
… Emerging Growth Drivers• Privatization trends … Entrepreneurs• New EU10 Infrastructure investments• MEA modernization projects• Value technologies • Loans and grants
Go Big GE Opportunities … • Company to Country
• Concessional Loans & SKD’s
• Financing & Equity investments
• Rural Health+
'00 '06 E
~$2.5B
~$1B
Revenues
24GE Healthcare
Only GE Healthcare
• The only wing to wing diagnostics company
• Clear Leader in Molecular Imaging, Medical Diagnostics, Diagnostic Imaging, Healthcare IT, Services, Clinical Systems, Protein Separations
• Uniquely capable of delivering clinical outcomes and better healthcare economics
• Real scale… R&D $1B+, global reach, broadest distribution
• Great integration success…more to come
Healthcare Re-imagined
25GE Healthcare
10%+
15%+
2005 2006 E
Revenue
OP
~$2.7
~$15
• Stronger, more balanced GE Healthcare portfolio
• Leading position in Healthcare IT
• Faster growth through disease focus
• Scale and strong growth in emerging markets
• Strong global footprint
• Unmatched Services capability
• Delivering clinical efficacy and healthcare system efficiency
GE Healthcare … Momentum for 2006
($B) ~$17
~3.2B
26GE Healthcare