Baker Hughes, A GE Company


A compelling, transformational combination

 The best partner to Oil & Gas customers … offering solutions based on
complementary equipment & services technology across the full spectrum
of the oil and gas value chain

 More innovative solutions to market faster and more cost effectively …
Baker Hughes’ leading products and services with GE Oil & Gas highly
differentiated manufacturing capabilities

 Best-in class physical + digital technology … combine Baker Hughes
domain expertise, technology and culture of innovation with GE Store and
GE industry-leading Digital Platform

 Value creation for customers and shareholders … positioned to weather
short-term volatility and participate in industry upcycle

Impact for Baker Hughes shareholders

 Ongoing ownership in a stronger, more competitive
business

 Cash dividend of $17.50 per share equal to 30%+ of
undisturbed share price

 Participation in substantial value creation through
synergies

 Revenue growth driven by increased customer touch
points

Deal overview

Merge GE Oil & Gas with Baker Hughes … GE owns 62.5%, new Baker Hughes owns 37.5%
+ Create new, publicly traded company with separate investor base
+ GE to contribute $7.4B to fund cash dividend to Baker Hughes shareholders upfront
+ Close expected mid-2017 … ~$.04 accretive to GE EPS in 2018

Combination of GE Oil & Gas & Baker Hughes establishes a new industry leader
+ 2x scale, complementary capabilities, more diversified
+ Can weather the cycle in short term & over time; significantly levered to recovery

Platform is positioned to deliver substantial customer value
+ Technical solutions  productivity
+ Best digital platform
+ Global execution

Synergy opportunity is substantial … cost and revenue
+ ~$1.6B synergies (~$1.2B cost & ~$0.4B revenue)

Disciplined capital allocation … O&G long-term fit for GE
+ Essential industry & fits GE Store

Efficient transaction structure using like-for-like equity with modest cash outlay
including disposition proceeds

See More about this transaction

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