GE 2BPresentation 2B Group 2B8 
PRESENTATION TO GENERAL ELECTRIC
Team 8
January 25, 2013
Consulting
Agenda
Executive Summary
Page
4
General Electric Overview
Page
6
Economy and Outlook
Page
11
Valuation Considerations: Fracking
Page
17
Potential Exit Strategies & Risk Assessment
Page
22
2
EXECUTIVE SUMMARY
3
Executive Summary
Overview
South
Africa
Overview
Industry
Update
Strategic
Initiative
Assessme
nt
Our
Perspect ive
General Electric has requested a prospective review of potential foreign direct investment opportunities
Included are perspectives on a potential investment in Hydraulic Fracturing in
South Africa
Country currently dependent primarily on coal for energy
South Africa is starting to see economic growth pick up, 3.8% annualized growth in Q4
Karoo region is ripe for fracking to drive industrial growth and diversify energy sources
Generated $8.0bn in Revenue
5.8% annual growth from 2008-2013 in the Fracking market
The Hydraulic Fracturing market is expected to grow to $15.5bn in the US alone by 2018
Determine appropriate course of action
Acquire Fracking License
Start-up costs and NPV analysis
Potential exit opportunity analysis
General Electric should pursue a Hydraulic Fracking operation in the Karoo region of South Africa, where massive profits can be had
The company could then pursue a sale of the venture, or spin-off the venture to lock in profits while maintaining a stake in the business
4
GENERAL ELECTRIC COMPANY OVERVIEW
5
General Electric Company Overview
Background & Strategic Positioning
General Electric’s eight business units generated a combined revenue of $146.0bn in
2012
The Company employs 307,000 employees worldwide and manufactures products across 170 countries
The majority of revenues come from the Financing and Power & Water Segments, accounting for 47.1% of total revenue
The Company’s has focused on simplification of the business, divesting non-core assets and focusing on growth in
Team 8
January 25, 2013
Consulting
Agenda
Executive Summary
Page
4
General Electric Overview
Page
6
Economy and Outlook
Page
11
Valuation Considerations: Fracking
Page
17
Potential Exit Strategies & Risk Assessment
Page
22
2
EXECUTIVE SUMMARY
3
Executive Summary
Overview
South
Africa
Overview
Industry
Update
Strategic
Initiative
Assessme
nt
Our
Perspect ive
General Electric has requested a prospective review of potential foreign direct investment opportunities
Included are perspectives on a potential investment in Hydraulic Fracturing in
South Africa
Country currently dependent primarily on coal for energy
South Africa is starting to see economic growth pick up, 3.8% annualized growth in Q4
Karoo region is ripe for fracking to drive industrial growth and diversify energy sources
Generated $8.0bn in Revenue
5.8% annual growth from 2008-2013 in the Fracking market
The Hydraulic Fracturing market is expected to grow to $15.5bn in the US alone by 2018
Determine appropriate course of action
Acquire Fracking License
Start-up costs and NPV analysis
Potential exit opportunity analysis
General Electric should pursue a Hydraulic Fracking operation in the Karoo region of South Africa, where massive profits can be had
The company could then pursue a sale of the venture, or spin-off the venture to lock in profits while maintaining a stake in the business
4
GENERAL ELECTRIC COMPANY OVERVIEW
5
General Electric Company Overview
Background & Strategic Positioning
General Electric’s eight business units generated a combined revenue of $146.0bn in
2012
The Company employs 307,000 employees worldwide and manufactures products across 170 countries
The majority of revenues come from the Financing and Power & Water Segments, accounting for 47.1% of total revenue
The Company’s has focused on simplification of the business, divesting non-core assets and focusing on growth in