China World Technology Medical Equipment Service Group
GE Aviation, GE Healthcare, and the merger of "GE Renewable Energy, GE Power Generation, and GE Digital Group", which focus on energy transformation, will become three independent global leading investment-grade listed companies
GE plans to split GE Healthcare tax-free in early 2023, and split GE renewable energy and GE power generation tax-free in early 2024
GE has achieved remarkable results in improving financial conditions and operating performance, and its development momentum is strong
GE will remain committed to continuing to strengthen business operations to achieve long-term profitable growth, so as to achieve high single-digit cash flow profits in 2023
GE will use the proceeds from the recent divestiture of GE Aviation Financial Services (GECAS) to substantially reduce liabilities; while working to reduce liabilities, GE will orderly carry out strategic capital deployment
Boston, November 9, 2021-GE announced today that it plans to form three industry-leading global listed companies through the following methods, focusing on growth industries such as aviation, medical and energy:
It plans to split GE Healthcare tax-free and establish a company with precision medicine as its core business in early 2023. GE expects to retain 19.9% of its shares;
Combine the existing three businesses of GE Power Generation, GE Renewable Energy and GE Digital Group, and plan to split tax-free in early 2024 to form a company with leading energy transformation as its core business
After completing these transactions, GE will transform into a company with aviation as its core business, focusing on building the future of aviation
As an independent operating company, the above-mentioned business companies will achieve long-term growth with more favorable market positioning and the following advantages, creating value for customers, investors and employees:
Meet customer needs with more focused operations, more focused and responsible attitude, and greater flexibility;
Based on the development characteristics and strategies of different industries, create tailor-made capital allocation plans;
Seek growth opportunities with more flexible business and financial strategies;
Form a full-time board of directors with deep domain expertise;
Provide employees with business and industry-oriented career development opportunities and incentive measures;
Attract a wider and deeper investor base with a unique, distinctive and convincing investment portfolio
Larry Culp, Chairman and CEO of GE, said: “At GE, we are very proud of our GE mission of'meeting the challenges of the world and driving an efficient future'. The world needs and deserves what we can do to solve aviation problems. The most severe challenges faced by fields such as, medical and energy. By forming three global listed companies that lead the industry trend, each independent company will benefit from more focused business areas, more customized capital allocation and more flexible strategies , So as to create long-term growth potential and value for customers, investors and employees. We will continue to use our technical expertise, leadership and global influence in our field to better serve our customers."
Larry Culp said: “GE has ushered in a decisive moment today. We are ready for this. We have achieved remarkable results in improving financial conditions and strengthening operations. At the same time, we continue to Deepen the lean management culture focused on continuous improvement. We will continue to move forward, continuously reduce debt, improve operational performance, and strategically deploy capital to promote long-term profitable growth. We must also hurry up and build the future of aviation to achieve Precision medicine leads the energy transformation. The development momentum we have established enables us to take this exciting step in GE's transformation and to give full play to the potential of each of our businesses.
On the basis of significant progress, focus on promoting the transformation and development of GE
The plan we announced today is based on the important progress that GE has made in recent years.
More stable financial situation
Through a series of strategic business restructuring measures including the recent GE Aviation Financial Services (GECAS) transaction, GE has become more focused and has lower financial risks, thus transforming into a leaner, stronger, and more focused high-tech industrial company;
Compared with the end of 2018, GE's total debt value is expected to decrease by more than US$75 billion by the end of 2021;
Through capital subscriptions of US$9.4 billion starting in 2018, as well as measures such as optimizing investment portfolios, improving claims management, and increasing premiums, GE's insurance business is more stable and capital risks are reduced;
The pension plan was adjusted in an orderly manner, including the US$8.5 billion prepared since 2018, and most pension plans in the United States and the United Kingdom were frozen at the same time. It is expected that there will be no additional costs for this plan in the next ten years; and
Measures including the cancellation of factoring business and the recently announced cancellation of the remaining factoring business plan will enhance capital liquidity and improve cash management capabilities.
Stronger business and operational performance
Through the implementation of a customer-centric and decentralized operation model, it has strengthened customer relationships and improved the performance of GE's nearly 30 income statements;
Popularize lean management concepts throughout the company to promote performance improvement and cultural transformation;
Improve business operation performance to achieve stable and sustainable cash flow, while improving financial transparency and flexibility to target additional investment in high-growth areas;
Strengthen leadership and governance capabilities by reorganizing the board of directors, appointing new management, and appointing a new audit company;
All businesses have gradually recovered from the impact of the new crown epidemic, and continued to improve cash flow, expand exchanges and cooperation, and drive growth through investment.
Current GE Chairman and CEO Larry Culp will serve as the non-executive chairman of GE Healthcare after independence, and will continue to serve as GE Chairman and CEO until the second business spin-off is completed. From then on, he will lead GE, a company focused on aviation.
Peter Arduini will serve as the global president and chief executive officer of GE Healthcare starting January 1, 2022. Scott Strazik will serve as the CEO of a company focused on the energy transition business after the merger of "renewable energy, power generation and digital businesses", and John Slattery will continue to serve as the CEO of aviation.
Contact Person: Miss. Andy