GE
The Experience of a Technology
and Service Provider
Ahmed Ramadan
Senior Vice President
Sales & Project Finance
Iraq Finance Conference
September, 2012
GE
Who we are
• The only company listed in the Dow Jones Industrial Index today
that was also included in the original index in 1896
• Employee: +300,000, Existing: +100 countries
• Rev. $156.8B, Earning $11.2B
Energy
Energy Services
Oil & Gas
Power & Water
Technology
Infrastructure
Aviation
Healthcare
Transportation
GE Capital
Americas
Asia
Europe, Middle East & Africa
Capital Aviation Services
Energy Financial Services
Real Estate
GE Home &
Business
Solutions
NBC
Universal
Cable
Film
International
Network
Sports & Olympics
Appliances & Lighting
Intelligent Platform
Security
A diversified infrastructure, finance and media
company taking on world’s toughest
challenges
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GE in the Middle East by the
Revenues ($ in billions)
Middle East Employee Growth
numbers
8.6
8.4
6.4
3.6
2000
5.4
2.8
Employees
4000
500
2.4
‘04
‘06
‘07
‘08
Year
’09
’10
• Over 4,000 employees
• ‘11 revenues: $8.6B
’11
‘07
‘08
‘09
‘10
‘11
Year
‘12
0
• 16 facilities completed
• 4 facilities under construction
Accelerating our growth, executing on
growth, and investing in human resources
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GE in Iraq
In Iraq since 1950’s … all divisions operating since 2004 …
In country team since 2009
Energy
Water
More than 130 installed GE
turbines with another 72
turbines being supplied to add
over 7,000 MW to the grid
Aviation
Mega Water injection project
for State Company Oil
Production (SCOP), main
supplier for fuel treatment
additive chemicals
GE HC has provided more than
• 1500 clinical equipment
• 180 conventional and mobile
X-Ray
• 20 Digital X-Ray
Healthcare • 14 CT scanners/3 MR systems
O&G
Others
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Awarded CF34-8C engines to
power 10 CRJ900 planes
ordered from Bombardier and
CFM56-7 engines to power 30
Boeing
737 aircrafts
Active since the 50’s O&G
sector providing power,
compressors and pumping
equipment to Iraq refineries,
compression stations and
pipelines
GE presence in Iraq extent
to all other GE divisions
from light bulbs, appliances
to rail and sensing and
inspection equipment, all
have been actively
supporting the needs for
Iraq infrastructure
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Iraq Localization
2012-2015
• More than 300 employee dedicated to Iraq
• Iraq is identified as one of the top 5
countries for GE focus within MENAT
• Continuous expansion of local presence
• Offices in Baghdad, Basra and Erbil
• 10-15 O&G, healthcare project sites
• Service centers at Basra operational base
Current
Future
GE Iraq not GE in Iraq
We Make Progress Together
Project Finance
Global project finance
Global Project Finance Loan
Volume
Asia Pacific
EME
Americas
• Global project finance activity
increased
A
$160
Proceeds (US$)
Market trends
$140
$120
$100
$80
• Rebound beginning to look
sustainable?
$60
$40
$20
$0
1H04
1H05
1H06
1H07
1H10
1H08
1H09
Global Project Finance Volume by
Sector
4% 1%
6%
29%
8%
9%
18%
Source: Thomson Reuters
• Energy remains biggest chunk of PF
activity (~$29B) but decreased by 9.4%
to H1 ’09
• Driven by Indian deals, Asia continues
to dominate PF market
• Returning bank appetite spurs
sponsors to seek longer tenors and
higher leverage levels
• ECAs being replaced by local funding
in some markets
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MEA Project finance trends
Environment (H1
•’10):$100B ($85B in ‘09) … Total volume of projects
•
$62B ($52B in ‘09) … Total debt… Govt and Multilateral: $18B
•
in MEA volume by 50% (from $8B to $4B)
•
Sustained H2 activity in GCC should make up for the gap
Project Finance – Regional Volume 2005-2009
2006
US$bn
2007
2008
2009
H1 2010
110
100
90
80
70
60
50
40
30
20
10
0
Western Europe
Middle-East
& Africa
North America
Source: Infrastructure Journal
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Project finance: “The Iraq case”
• Need for credible Developers, EPC &
investors’ interest and capabilities
Duhuk
• IPP Regulatory framework still in
progress
Erbil
Nynawa
Sulimaniya
Ta’amim
• Scarcity of long term funding…even
more challenging on Project Recourse
basis
Salah Al-deen
Diyala
Anbar
Bagdad
Karbala
Waset
Babil
Maysan
Qadisiyah
Najaf
Thi-Qar
Basrah
• ECAs although opening up mainly under
corporate/sovereign recourse basis,
remain off cover under PF structures
Muthana
• We are seeing appetite from equity
investors for Infrastructure Project
development
• Regional banks & International Banks
with local presence start to consider
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longer term commercial lending.
© General Electric Company, 2010
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GE Experience in
Sales & Project
Finance
Sales & Project Finance
Profile
• Global customer finance unit acting as an advisor
to the GE Industrial businesses... not a profit
center
• Reporting into Corporate Finance with shared
objectives with the GE businesses
• A team of ~70 professionals
• Located in 16 countries
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Project Development Support for Our
Customers
Focus Areas

Financial Advisory Support
– Financial Structuring
– Debt arranging and syndication
– Access to private equity investors

Project Development Support in
parallel with business tech teams
– Contract expertise
– Technology/market familiarity
– Consortium agreements

Funding Support
– Debt Products
– Mezzanine Products
– Derivatives
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Leveraging global funding sources
ECAs
•
•
•
•
•
U.S. Ex-Im
Coface
SACE
JBIC
BNDES
Grants
• Brussels/EU
• U.S. DOE,
•
DOD
Millennium
Challenge Corp
Int’l Banks, Ins,
Pension &
Finance Co
MLAs
•
•
•
•
OPIC
World Bank
EBRD
IFC
• SocGen
• BNP Paribas
• HSBC
Islamic Finance
•
•
•
•
IDB
AFESD
ICD – Private
ABC Islamic
Bank/ Retail
Pools
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Regional/ Local
Banks
• China (CCB,
•
•
•
ICBC, SDB)
Russia
(Sberbank)
Gulf (Al Baraka)
Brazil (Unibanco
Aymore, Banco
do Nordeste)
Equity
• EPC/developers
• Private equity funds
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Expertise in multiple product areas
Export
Finance
Trade
Finance
•
•
•
•
•
•
Private
Bank guarantees
Letters of credit
Deferred payments
Forfaiting
Short/med term
• Mainly public buyer
• Gov’t agency
• Sovereign, bank
Leasing/
Lending
• Financing typically
•
•
Project
Finance
equipment specific
Applicable for more
developed markets
Financing frequently
requires int’l bank
support
•
•
guarantee
Long term
Sourcing issue
• SPC
• No/limited
•
Political Risk
&
Credit
Insurance
•
guarantees
Financing dependant
on cash flows
Frequently requires
ECA/ MDB support
• Insure against
•
•
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expropriation,
currency
inconvertibility, war,
etc.
Insure against
corporate risk
Credit Default Swaps
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GE global development
When a piece of the
puzzle is missing …
• People – 35 person global team;
expertise in
development, deal structuring and
development finance and return
• Products - Diverse energy solutions:
Thermal, IGCC, Wind, Solar
(photovoltaic), Jenbacher engines
powered with biofuels
• Technical expertise - Access to
“world-class” Technical Support
Group
• Access to developers - Strong
relationships with wind and thermal
project developers
• Knowledge- Project
development expertise to support
new product launches
• Asset management- Long term asset
management of GE owned projects
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GE support on IPPs/PPPs
• Global network of access to International and local EPC &
Developers
• Dedicated Expertise team to support Iraq
• EPC Screening & Matrix model to evaluate EPC capabilities
• Strong Access to international & regional developers
• Identify gaps and suggest solutions
• Tailor make Funding solutions
• Long term asset management of GE equipment
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ECA for utilities …
+
• Expanding capacity to help
the Kingdom meet soaring
power demand
+
+
• Developing comprehensive
long term financing solutions
with US Eximbank since ‘08
• More than 300 GE turbines • Pilot transaction $1.1B Direct
installed
loan to SEC for 3GW(PP8,
Feras, Qurrayah)
• Generating half (>14GW) of
SEC power generation
• Largest ever Loan in the
capacity
history of US Exim:
“Landmark”
• GE technology operating in
37 power plants across 4
• Extended support under direct
operating areas
loans for Al Dur and PP11
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Working together on future projects
… to win and execute successfully
• Regional track record: winning IPP power projects
• Developed relationships: leveraging 30 years of local presence
• Financing: facilitating ECA financing to increase developer capability
• Execution: seasoned regional project capability
GE is committed to support Iraq meet its infrastructure needs
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