Ge's Act - Letter to Shareowners

It is easy to be uncertain as an investor to- day. The global economy is long on volatility and short on economic leadership. But GE remains a good investment. In a complicated world, we are simpler and more competitive. In an uncertain world, we are skilled in man- aging through tough cycles. In a risky world, we have cultural strength and a lot of cash.

We are tested. Companies that think they are perfect can get you in trouble in this environment . GE is not perfect , but we make progress every day. In 2015, we continued to take strong actions that make GE better.

We transformed our portfolio by exiting most of financial services while completing the purchase of Alstom, our largest industrial deal. This ends a period in which we refo- cused GE as a high-tech leader. To do so, we sold more than half the Company where we lacked competitive advantage and re- built our core franchises. Every GE business

today rests solidly on a bedrock of deep do- main competency.

The bold strategy to exit GE Capital came from Keith Sherin and his team. The plan was complicated, challenging and risky. It involved one of the largest corporate restructurings in history. Their execution has been flawless. The move says a lot about the GE culture: We are willing to take bold actions in the face of uncertainty; and our team puts the Company ahead of their own interests.

At the same time, we accelerated our transformation as a leader in the Industrial Internet , becoming a “Digital Industrial” com- pany. In the Industrial Internet we see the next great wave of productivity both for our company and for the customers we serve. We are a company that invests in broad industrial transitions, and they don’t come much bigger than the full application of data and analytics to machines and systems.